Poland Weighs New Product Charges

 

Since 1998 the Ministry of Environment has carried out intensive activities aimed at modification of the system of economic instruments and the introduction of new, typically market-based instruments, such as product and deposit fees. In July 1998 the Economic Committee of the Council of Ministers adopted the document prepared in the Ministry of Environment entitled: "Provisions of new economic mechanisms in the field of environmental protection", which envisaged three directions: Modification of the current system of environmental fees and their redistribution. Implementation of the new, market-based economic instruments in environmental protection management. Improvement of the system of tax exemption aimed at supporting environmental behavior. In July 1999 the Economic Committee of the Council of Ministers adopted "A concept of new economic mechanisms in environmental protection." This concept proposes implementation of new economic instruments in Poland, such as product and deposit fees for some products, which should be helpful in limiting the amount of waste generated in Poland and for their rational management, as well as in reaching the standards required in this field in the European Union. Based on the above mentioned concept a draft act on obligations for entrepreneurs regarding management of selected waste products and deposit fees has been prepared. Since April 2000 this draft act has been submitted to inter-ministerial consultations; it has also been revised by the Joint Commission of the Government and Self-government and by the task force against bureaucratization of the economy. On April 11, 2000 the draft act was adopted by the Council of Ministers and soon it will be submitted at the Parliament for voting and approval. The act will impose on the producers or importers of products in packages as well as of the selected products that are dangerous for environment new obligations related to recovery and recycling. The producers will have to achieve minimum levels of reuse and recycling; in case of not reaching these limits a product fee will be imposed, calculated on the basis of difference between the actual and required amount of reused and recycled waste. The set of products which will be covered with the provisions of this act include: packages made of plastic, aluminum, metal, paper and glass, technical oils, fluorescent lamps, tires, refrigerating and air-conditioning devices containing CFCs, batteries. Moreover, introduction of the deposit fee for car batteries with lead content is planned. Deposit fees would be calculated and paid at retail locations. In case when the used battery is returned, the deposit fee will not be charged on the purchase of the new one. This article was contributed by Joanna Spyrka, Ministry of Environment of Poland.

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