site.btaBusinesses Propose Moratorium on Higher Product Fees

Businesses are proposing a moratorium on the increase of product fees, said Dobri Mitrev, Chair of the Management Board of the Bulgarian Industrial Association (BIA), at a BTA-hosted press conference on Tuesday.

He noted that uncertainties related to the waste management system are already having a serious impact on the Bulgarian economy and industry, as well as on Bulgarian consumers.

Mitrev recalled that last year a process began concerning waste electrical and electronic equipment, but this system also covers a number of other areas. According to him, the flaws in the system outweigh the positive effects. “We are responsible organizations that do not deny either environmental policy or the environmental goals set by the European Union (EU) and by Bulgaria as a country,” said the BIA Chairman. He added that the way these policies have been implemented in Bulgaria recently has had an extremely negative impact, both in terms of policy and financial outcomes, which he believes are unfavorable for producers and importers, as well as for all Bulgarian consumers.

Mitrev explained that this waste management system is financed through product fees, for which it is unclear both how they are determined and how they are spent. Mitrev said that there has been an extremely significant increase in fees for electrical and electronic equipment, motor vehicles, batteries, solar panels, and other products. These increases inevitably affect the final price.

The organizations involved in addressing the issue propose conducting an objective analysis of the system’s costs and efficiency, as well as promoting competition through the issuance of permits for new recycling organizations. According to Mitrev, one of the main problems is that there are very few such organizations, and that obtaining a permit to set up a new recycling organization is extremely difficult and carried out under unclear procedures.

Businesses insists on a clear methodology for determining product fees—one that is subject to prior public consultation so that all stakeholders can present their opinions, proposals, and criticisms. It is also essential to ensure transparency in the work of the committees that issue permits and licenses. “We insist that these committees include representatives of the business sector and other stakeholders, so that the process is as transparent and objective as possible, and to avoid any perception of subjectivity and corruption,” said the BIA Chairman.

According to him, there is a perception in Bulgarian society that the reason for high prices is the country’s entry into the eurozone, which is categorically untrue. “Our problems are internal,” Mitrev said, adding that in order to reduce the negative effects, entrepreneurs have rallied around the idea of engaging in direct dialogue with state institutions, on which Bulgaria’s alignment with average European standards depends.

Mitrev said that a meeting with the Minister of Environment and Water is scheduled for tomorrow.