The Brussels-based European Federation of Waste Management and Environmental Services (FEAD) is calling for the European Commission to consider lowering the value-added tax (VAT) for products made from scrap materials.
The call follows the EC’s January 2018 proposal to provide member nations more flexibility in setting VAT rates within their own borders.
In a statement, FEAD identified the European Commission’s proposal on the VAT as a potential way to support circular economy goals and benefits.
States FEAD, “Now it will be up to the Council acting unanimously to give the green light to the Commission’s proposals, with the perspective that reduced VAT on targeted products or services can be in the future an excellent supportive measure to help realizing circular economy’s goals and benefits, by promoting sustainable products and raising consumers’ awareness.”