Tax on new products from January 1, 2025, draft law: Paid by producers for waste

2023-10-26 12:23:00, Ekonomi CNA

Tax on new products from January 1, 2025, draft law: Paid by producers for waste

Illustrative photo

All producers who develop, produce, process, handle or sell or import on a professional basis, products that generate waste after use, will carry what is called extended producer responsibility.

This means that they will be responsible for covering the cost of treating the waste generated by this activity.

The Ministry of Tourism and Environment, in a draft law submitted for consultation "On the implementation of Extended Producer Responsibilities" which, according to the report, aims to establish and operate the scheme for Extended Producer Responsibilities (EPS), so that every natural person or juridic to pay the obligation due to him in this aspect.

"PZP is an obligation for producers, for companies that place products on the domestic market of the country, which, after being used, generate waste that belongs to one of the waste streams defined in the draft law, in accordance with the provisions of Law no. 10463, dated 22.9.2011 "On integrated waste management", amended. These companies, according to the EU waste legislation, have additional obligations and responsibilities to manage the waste generated by their products.

Their obligations are regulated in a special legislation at the EU level. Some of the main obligations of the manufacturer are to finance and create a system for the collection, transport, recycling or another way of handling the waste generated by their products that they put on the market in Albania and to fulfill some important goals for the collection, their recycling and treatment, as determined by EU or national legislation", the report states.

Product tax

More precisely, the draft law sanctions the product tax in Article 16, specifying what the subject's obligations are. The producer subject to the PZP that places products on the market for the first time, pays the product tax, which is calculated depending on the PZP products that it puts on the domestic market.

The product tax becomes mandatory starting January 1, 2025.

The producer who fulfills the PZP obligations through the payment of the product tax, makes the first payment by February 15, for the products placed on the market during the previous year.

The methodology for determining the product tax is determined by the decision of the Council of Ministers, with a proposal from the minister responsible for the environment and the minister responsible for finance.

The income generated from the payment of the product tax is considered a secondary income that 70% goes to the state budget and 30% goes to the special fund of the circulating economy, to be used to fulfill the requirements of this law.

The establishment, operation and monitoring of the special Fund of the Circulating Economy is approved by Decision of the Council of Ministers with the proposal of the Minister responsible for the environment and the Minister responsible for finance," the document states./ Monitor