Plastic Girls

In the last few weeks the Hungarian legislation concerning product fee had to face several criticism from environmental organizations. They claim that the present system and the bill which has been introduced by the government will have serious negative effect on the market. 

The product fee was introduced in 1995 in order to encourage the more efficient use of natural resources. Currently, the product fee is payable on other crude oil products, tires, refrigerators, refrigerants, packaging, batteries, paper-based advertising materials, and electrical and electronic equipment.

Under the current rules, the product fee is payable by the person who first sells on the Hungarian market, or uses for his own purposes in Hungary, a locally manufactured product, or a product originating in the European Community. It is also payable by the customs debtor in the case of imported products and also by the person who first sells in the Hungarian market and the person who then first resells commercial packaging (typically containers for beverages, such as plastic bottles).

In addition to paying the product fee, manufacturers, distributors and companies who purchase certain products from abroad also have waste management obligations (e.g. take-back, collection, recycling and disposal). Companies that generate, possess or manage waste are required to keep records of such waste for each of their permanent establishments and report it to the authorities.

However, product fee supposed to be an important tool in environmental legislation and also in waste management, several Hungarian environmental organizations questions its efficiency. They claim that companies have to deal with too many administrative tasks because of the intransparent system. They fear that the number of small companies going bust will rise because they have to face more difficulties. Moreover, the European Union has already obligated Hungary in 2007 to change its legislation. Until today, the country have failed the fulfill the obligation, but environmentalists claim that the new bill which has been introduced in the last day will not also fulfill it.