Lower VAT rate for recycled products called for
The idea of a lower VAT rate for products made from recycled materials, which could be applied at the EU level, was presented by
Czech Environment Minister Petr Hladík at the recent meeting of EU environment ministers.
Currently, EU law does not allow member states to reduce VAT on products made from recycled materials.
However, the Czech Republic wants to introduce a reduced VAT rate of 12 percent on these products as part of a tax package to consolidate public finances.
The lower rate must be approved at the EU level for such a move.
According to the minister, the reduced VAT rate should apply to all plastic products made from recycled materials.
These include toys, hygiene products, everyday products, snow shovels, flower pots and even building materials.
"These are also materials that today end up either in landfills or in incinerators and that we can recycle for use in the municipal sector, such as benches or street furniture," Hladík told Czech media on Monday.
The minister said the possible inclusion of products made from secondary raw materials at a lower rate would encourage the development of a circular economy.
At the same time, this would increase consumers' motivation to use recycled materials and thus expand the production of secondary raw materials.
Formally, VAT rates are the responsibility of finance ministers, but Hladík said it was logical for environment ministers to agree to the proposal.
"We would like the Spanish presidency to take a close look at this," he said.