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Bill on Lifting Taxation on All Rigid PVC Products now in Hearing
Loss of yield suggested compensated by burdening PVC coated steel sheets with tax
10-11-2003
The Ministry of Taxation has introduced a bill on which a lift of taxation on all rigid PVC products shall be based later on. In the field of rigid PVC products only pipes, windows and doors are exempted of the environmental taxation for the time being. The bill is submitted to the relevant hearing parties. The deadline of the hearing is 21 November 2003 after which the bill shall read in the Danish Parliament.
In the bill it is made clear why the government is now suggesting a lifting of taxation of all the rigid PVC products. In the bill it is said that since collection and mechanical recycling of a number of rigid PVC products is now a possibility, the original aim of maintaining taxation on these products is no longer relevant.
In the bill the products in question are mentioned, namely gutters, roofing, up-light windows, Venetian blinds, cable trays and stable interior. The Ministry of Taxation is estimating that a lifting of the taxation on the rigid PVC products will imply a loss in yield amounting to approx 1,2 million € a year. It is explicated in the bill that the taxes on the phthalate plasticized PVC products are suggested maintained.
In order to cover the loss of yield arisen in consequence of the bill, the Ministry of Taxation suggests that PVC coated steel sheets and profiles will be subject to taxes. The reason why is that these products are containing phthalates, and according to the information from the Ministry of Taxation partly not subject to any collection arrangements and partly causing risk of dioxin formulation when the steel is recycled.
The Ministry of Taxation estimates with a considerable uncertainty that the taxes on the steel sheets will bring along a yield amounting to 0,9 to 2,2 million €.
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