Continuing argument over environmental charge

Packaging has been subject to an environmental charge for ten years, but the amendment of relevant legislation in 2005 stirred up a heated argument. According to earlier legislation, the environmental charge had been calculated on the basis of the mass of packaging materials used. The new concept however, took the number of units as the basis for calculating the charge. Parliament has passed this amendment, though it had been clear from the beginning that these rules are in direct contradiction of section 90. of the Statutes of the EU, which prohibits the application of domestic tax regulations which are discriminative and hinder the free flow of goods. In response to this amendment, the Association of European Metal Can Manufacturers and the Hungarian Soft Drinks and Mineral Water Association filed a complaint in Brussels. .In their opinion, the principle of competition on equal terms is violated in three ways: there is discrimination between domestic manufacturers and importers, there is also discrimination between manufacturers of soft drinks and manufacturer of other beverages, and finally different standards are applied to recycling of different types of packaging. In early July, Hungary was officially called upon by the EU Commission to amend regulations applicable to the charge payable after the packaging of beverages. In case Hungary fails to amend this legislation within two months, the Commission will be entitled to submit this issue to the Court of the EU. The opinion of legal experts appointed by the EU seems to confirm the contents of the complaint. Refillable packaging is declining in popularity.