New levy to be imposed on glass bottles from July 1 |21 May 2018
A new levy on broken glass bottles that enter the country is expected to enter into force on July 1.
The Department of Waste, Enforcement and Permit of the Ministry of Environment, Energy and Climate Change recently held a meeting with stakeholders to discuss this new levy.
The meeting was held at the Seychelles Trading Company’s conference hall.
The levy is part of the glass waste strategy approved by the cabinet in April 2018 which is aimed at financing the whole glass waste recycling programme.
The expected benefits is to enable glass recycling in the Seychelles; to eliminate littering of glass bottles and related hazards; to reduce the cost of landfill coverage and to provide an extra source of revenue.
The logic is that R2 will be taxed on all beverages contained in glass bottles with the exemptions of baby products, bottles reused/recycled or redeemed by local manufacturing companies. When members of the public return those bottles to recycling centres, they will be paid R1 for each bottle. But the public will only be able to do so as from end of January 2019.
It is to be noted that in 2008 a tax of R1 was introduced on cans and PET bottles which entered the country where the revenue generated was used in waste management. The public was refunded 50c when these bottles and cans were returned to recycling centres. As this project has worked very well, it is along this line that the new levy is being introduced on the majority of alcoholic and juice bottles excluding those of tomato sauce.
“This category of bottles are classified under the HS Code. So there will be a levy on each glass bottle that enters the country as from July. After seven months when we have collected enough revenue, members of the public can bring in their bottles as from end of January 2019 for their R1 refund,” said Nanette Laure, director general for Waste, Enforcement and Permit.
The majority of participants present were not in agreement with the new levy as they said it will defeat the purpose of the drive the country is undertaking to promote biodegradable products as the rising cost in glass bottles will encourage the consumers to consume more PET products.
“We have been introducing products like biodegradable plastic or shopping bags in Seychelles for example. And now we see the government is willing to tax a non-polluting material, glass, at a higher level than the PET, plastic or other cans, R2 instead of one. So it will increase the price of the product in bottles. For the same product exactly the same capacity as in a can or in a bottle, there will be a future R2 increase. Therefore the bottle will be higher. I don’t believe the consumers will choose the most expensive product. It will increase the use of PET products,” said Alfred Fourcroy, CEO ISPC, Seychelles.
As for a representative of Pillay R Group, Mr Sharma, he said more time should have been given for such an implementation.
He said the categorisation products should be looked at more carefully to see which one really needs to be increased while we keep trying to keep the environment safe from PETS, cans and glass bottles.
“There will be exemption for companies that are already importing broken bottles and which have their own recycling service. They will not be liable for the R2 tax. But they will need to bring along their proposal or scheme being implemented, so we know what they are doing. Because we are the mandated authority to inform them on whether they will be exempted or not,” said Ms Laure.