Landfill tax to be imposed from 1 January
Kostas Skrekas
21 Dec 2021
/ 19:35
ATHENS. What is stated in the Minister for the Environment Kostas Skrekas’ circular.
The Minister for the Environment and Energy Kostas Skrekas puts an end to the scenarios for extension of the date that the landfill tax will be implemented. Despite the appeals of many Mayors, who were asking for more time, the Minister, with an explanatory circular sent yesterday to the country’s 22 FODSAs (Solid Waste Management Organisations) and the responsible municipal services, is making them face up to their own responsibilities.
The local authorities are asking for time to improve the low recycling rates so that the taxes paid by citizens will not be increased. In fact, the Central Union of Greek Municipalities (KEDE) has called for the tax to be imposed from 2024, in order to complete waste treatment projects in time and drastically reduce the amount of waste going to landfills.
However, in the circular issued, the Minister pointed out that from 1 January, a landfill tax will be imposed on the quantities of untreated urban waste deposited in landfills and on the urban waste treatment residues resulting from urban waste treatment plants (Recyclable Waste Sorting Centre (KDAY), Biological Waste Treatment Plants, Mechanical Biological Treatment (MBT) Plants, and urban waste incineration plants), which will also end up in landfills.
All FODSAs and the Municipalities or legal entities belonging to the Local Authorities and exercising the FODSA’s responsibilities, are obliged to pay the landfill tax. The latter is set at €20 per ton of waste from 1 January 2022 and will be increased annually by €5 per ton and it could reach up to €35 per ton. From 1 January 2026 the landfill tax will be set at €45 per ton of waste, it will increase to €55 per ton from 1 January 2027 and it will remain at this price for the following years.
The landfill tax will be calculated every six months on the basis of the actual quantities of waste deposited at landfills and will be paid into a special account held by the Hellenic Recycling Organisation. Each year, they will have to submit to the latter data on the calculation of the landfill tax for the first half of the year by 30 September and for the second half by 31 March of the following year, while they will pay the necessary amounts one month after the abovementioned dates.
Thus, Mr. Skrekas clarified that for 2022 the data for the calculation of the landfill tax for the first half of the year should be submitted by 30 September 2022 and the necessary amount should be paid by 30 October 2022 to the Hellenic Recycling Organisation’s special account. The data for the second semester of 2022 should be submitted by 31 March 2023 and the money should be paid by 30 April 2023.
Fines
The landfill tax is taken into account when drawing up the FODSA invoicing regulations, it is included in their annual management costs and is distributed to all Municipalities. The landfill tax should have already been taken into account by the FODSAs when drawing up their invoicing regulations and the corresponding amount should have been included in their budgets.
However, as Mr. Skrekas stated in the circular, the transmission of the invoicing regulations revealed the failure to include the landfill tax both in the regulations and the budget of the Μunicipalities. Those organisations that have not done so, should immediately comply, proceed to a revision of the budget and pricing policy and inform the General Secretariat for Waste Management Coordination. Otherwise, there will be penalties and surcharges for not paying the landfill tax on time.
In particular, in the event of payment after the deadlines, a fine equal to 2% of the landfill tax corresponding to the amount that should be paid, compounded with an interest rate of 2% for each month of delay, will be imposed by the Hellenic Recycling Organisation on the FODSAs, Municipalities or legal entities belonging to local authorities and exercising the FODSA’s responsibilities.
Brief historical background
It is worth noting that as early as the beginning of 2012, there was a provision for the imposition of a special landfill tax. At that time, the tax for the first year of its imposition, i.e. 2014, was set at €35 per ton of waste, it would be increased by €5 per ton and it could reach up to €60 per ton. However, in 2015, a Legislative Act suspended the date of implementation of the landfill tax until 31 December 2016.
But that date was not complied with either, while in 2019 the imposition of the tax was postponed to 1 January 2020 and the amount of the environmental tax was set at €10 per ton of waste and from 1 January 2021 it would increase annually by €5 per ton and it could reach up to €35 per ton. However, the law changed again this year and so the date was again postponed to 1 January 2022 and the amount of the tax is gradually increasing.
Source: OT.GR
The local authorities are asking for time to improve the low recycling rates so that the taxes paid by citizens will not be increased. In fact, the Central Union of Greek Municipalities (KEDE) has called for the tax to be imposed from 2024, in order to complete waste treatment projects in time and drastically reduce the amount of waste going to landfills.
However, in the circular issued, the Minister pointed out that from 1 January, a landfill tax will be imposed on the quantities of untreated urban waste deposited in landfills and on the urban waste treatment residues resulting from urban waste treatment plants (Recyclable Waste Sorting Centre (KDAY), Biological Waste Treatment Plants, Mechanical Biological Treatment (MBT) Plants, and urban waste incineration plants), which will also end up in landfills.
All FODSAs and the Municipalities or legal entities belonging to the Local Authorities and exercising the FODSA’s responsibilities, are obliged to pay the landfill tax. The latter is set at €20 per ton of waste from 1 January 2022 and will be increased annually by €5 per ton and it could reach up to €35 per ton. From 1 January 2026 the landfill tax will be set at €45 per ton of waste, it will increase to €55 per ton from 1 January 2027 and it will remain at this price for the following years.
The landfill tax will be calculated every six months on the basis of the actual quantities of waste deposited at landfills and will be paid into a special account held by the Hellenic Recycling Organisation. Each year, they will have to submit to the latter data on the calculation of the landfill tax for the first half of the year by 30 September and for the second half by 31 March of the following year, while they will pay the necessary amounts one month after the abovementioned dates.
Thus, Mr. Skrekas clarified that for 2022 the data for the calculation of the landfill tax for the first half of the year should be submitted by 30 September 2022 and the necessary amount should be paid by 30 October 2022 to the Hellenic Recycling Organisation’s special account. The data for the second semester of 2022 should be submitted by 31 March 2023 and the money should be paid by 30 April 2023.
Fines
The landfill tax is taken into account when drawing up the FODSA invoicing regulations, it is included in their annual management costs and is distributed to all Municipalities. The landfill tax should have already been taken into account by the FODSAs when drawing up their invoicing regulations and the corresponding amount should have been included in their budgets.
However, as Mr. Skrekas stated in the circular, the transmission of the invoicing regulations revealed the failure to include the landfill tax both in the regulations and the budget of the Μunicipalities. Those organisations that have not done so, should immediately comply, proceed to a revision of the budget and pricing policy and inform the General Secretariat for Waste Management Coordination. Otherwise, there will be penalties and surcharges for not paying the landfill tax on time.
In particular, in the event of payment after the deadlines, a fine equal to 2% of the landfill tax corresponding to the amount that should be paid, compounded with an interest rate of 2% for each month of delay, will be imposed by the Hellenic Recycling Organisation on the FODSAs, Municipalities or legal entities belonging to local authorities and exercising the FODSA’s responsibilities.
Brief historical background
It is worth noting that as early as the beginning of 2012, there was a provision for the imposition of a special landfill tax. At that time, the tax for the first year of its imposition, i.e. 2014, was set at €35 per ton of waste, it would be increased by €5 per ton and it could reach up to €60 per ton. However, in 2015, a Legislative Act suspended the date of implementation of the landfill tax until 31 December 2016.
But that date was not complied with either, while in 2019 the imposition of the tax was postponed to 1 January 2020 and the amount of the environmental tax was set at €10 per ton of waste and from 1 January 2021 it would increase annually by €5 per ton and it could reach up to €35 per ton. However, the law changed again this year and so the date was again postponed to 1 January 2022 and the amount of the tax is gradually increasing.
Source: OT.GR
