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PVC Taxation Bill ready for its second Reading in the Danish Parliament
After its first reading the bill will have a reading in the Committee for Taxation
04-02-2004
The Danish Parliament has now published the minutes of its first reading of Bill on revision of the PVC Tax Law (L110). The reading took place on 20 January. During the reading the parties’ spokesmen on taxation expressed their opinion on the bill to abolish the taxation on all rigid PVC.
The reading split the Parliament into two groups. The government parties supported the motion, while the opposition parties expressed their concern as to the quantity of collected PVC waste, which was in their opinion not sufficient. The Danish People’s Party said during the reading that they did not want to make their final decision until they have scrutinized the hearing comments, that various stakeholders have sent to the Ministry for Taxation.
One of the issues discussed most frequently during the reading in the Parliament was the hearing comment provided by the National Association of Local Authorities in Denmark (KL) to the Minister for the Environment. In the letter KL expresses that an abolishment of taxation on rigid PVC products should be put off until a basis was found, on which a decision for the future treatment of PVC waste could be based. The Environment Minister has now made a written reply to the KL.
Among other things the minister opposes to the KL statement that today only 3 pct of a collection potential of 40.000 tonnes are collected. The minister says that even though 40.000 tonnes of new PVC products are marketed every year, these quantities will not become waste until many years later. This means that you cannot equate produced quantities with potential waste quantities. The potential waste quantity is more likely to be abt 4.000 tonnes, the minister says.
In his reply to the KL the minister also says that it is incorrect when they argue that the reason for an abolishment of taxation has been that the industry is taking full financial responsibility for collection and recycling of the PVC waste. It is a common responsibility between the local authorities and the industry, it appears from the minister’s reply.
In connection with the committee reading the Committee for Taxation has raised a number of questions to the Minister for Taxation. All the questions touche the financial aspects of collection and recycling of PVC waste, and how to secure that more PVC waste is collected than is the fact to day. The time schedule for the committee reading is now that by 6 February the Minister for Taxation shall reply to the questions put forward to him. Hereafter the committee will have a political discussion and submit their opinion on 18 February. The bill will then be ready for its second and the final third reading.
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