Post-release "Round table" on the topic: "Creating conditions for the development of the industry of waste management in the Russian Federation within the framework of the Federal Law №89-FZ "On Waste production and consumption " – June 28, 2016

9 August 2016

Recycling - a high-tech sector of the economy, which makes a significant contribution to the Gross Domestic Product(GDP), provides a self-employed, as well as tens of thousands of jobs both in large and medium-sized and small businesses. At the same time , this industry is facing serious challenges in promoting environmental sustainability and resource conservation. Efficient use of resources - one of the most important principles of sustainable development of the economy. Therefore, the system formed by the rational use of material and energy resources through the implementation of institutional, economic, and technological innovation. These methods include and stimulating the collection of secondary resources with a view to their subsequent return into the economy through the reduction of administrative barriers and state tax burden. The Russian BMP (secondary material resources) are used realy in all industries, but their collection and processing depth remains low. Waste generation in the Russian economy is about 3.4 billion tons per year, including 2.6 billion tonnes / year – for industrial waste, 650 million tons / year - liquid poultry and livestock waste, 70 million tonnes / year - MSW 30 million tons / year - rain water treatment facilities. The average level of utilization is about 26%, including processed industrial waste 35% TBT - an average of 5.7%, others practically unprocessed waste.

Soviet Union attached great importance to disposal.Has been standardized bottles for milk, soft drinks, Nation wide collection points scrap glass has been created. For the collection of waste paper and scrap metal has been involved students and members of the Pioneer organization.Currently, the organization for collecting secondary resources in the country-wide seriously hampered due to administrative barriers and discouraging this kind of law activities. As a citizen who has bought, for example, bottle of soda, has paid initially, not only drink, but also the cost of packaging, and willing to hand over the empty can in the receiving station, must go through a complex procedure of self identification and pay tax on personal income (PIT) and submit a declaration of income at state agencies.In USSR the sector of waste materials was managed by four authorities: Glavvtorsyrё (Ministry of Light Industry) - the collection of waste in cities and towns; Tsentrosoyuz - rural areas; Glavvtorchermet (Ministry of Ferrous Metallurgy) - industrial enterprises, state farms and MTS; Glavvtortsvetmet (Ministry of non-ferrous metals) - industrial enterprises, state farms and MTS.

Currently, not even relevant agencies in Russia, responsible for the disposal industry.

In world practice, there was a system of secondary resources market leaded by professional business communities - associations, unions - which produce industry performance standards, monitor their performance and adjust depending on the emergence of new technologies and market trends. In Germany, the contribution of recycling industry in the economy of the country is 90 billion. Euro.

In Russia, the potential of the industry is only at the initial stage is from 20 bn. Euros and a minimum of 300 thousand jobs. In this case, for several reasons, including the same gaps in legislation Russian sphere of waste is decentralized and uses 5% of its potential in the best case .

According to statistics codes we do not have this type of activity as the processing of waste paper! Although the industry exist and is paying more than 15 billion. Rubles in taxes annually. The same thing we see in other activities related to the processing of plastic, glass and other wastes.

However, the positive trend is certainly there. The state reduces the tax and administrative burden on business in the area of data collection and processing. In 2009, VAT was abolished for the sale of scrap metal, and June 2, 2016 was signed the law №174-FZ on the abolition of VAT on the sale of waste paper. This measure certainly had a stimulating and revitalizing effect on the industry.

On January 1, 2015 came into force the Federal Law №458-FZ, which introduces significant changes to the basic law in the field of waste management - №89-FZ "On Production and Consumption Waste". The new bill aims to solve two problems: to form an administrative system of state regulation in the field of treatment of waste and reduce the amount of waste disposal in landfills due to the introduction of enhanced accountability of mechanism of manufacturers. According to the new rules, manufacturers of goods have a choice - to dispose of the waste themself or pay an environmental fee, which should go to the recovery. A great advantage of the new document was the introduction of a ban on the dumping of waste, which contain useful fractions, to be disposed from January 1, 2017.

With a view to the effective implementation of government programs and of the legislation in the field of waste management, development of the industry recycling, reduction of administrative and tax burden on business, industry enterprises and public organizations made a number of legislative and institutional initiatives - the abolition of personal income tax in the waste paper and scrap of ferrous and non-ferrous metals , updating NACE codes and JECFA to create industry waste.

This important and topical issues was devoted to round table on the theme: "Creating conditions for the development of the industry of waste management in the Russian Federation in the framework of the Federal Law №89-FZ" On Production and Consumption Waste ", which was held June 28, 2016 at the Chamber of Young Legislators of the Federal Assembly of the Russian Federation. The event was supported by processors' League of waste paper and the national association of scrap processors NP NSED "RUSLOM.KOM".

Chairman of the Presidium was Irina Alfredovna Hecht, member of the Federation Council, Deputy Chairman of the Committee on Agrarian and Food Policy and Environmental Management. The moderator of the round table - Evgeny Timonin, Member of the Chamber of young legislators of the Federation Council, Deputy of the Committee on Agrarian and Food Policy and Environmental Chamber of young legislators. Also among the participants of the roundtable were members of the Federation Council Lebedev Vladimir Albertovich, Deputy Chairman of the Committee on Agrarian and Food Policy and Environmental Management, Veprintsev Julia, member of the Committee on Social Policy, as well as representatives of the Natural Resources of the State Duma Committee, Environment and Ecology, Government Administration, Ministry of Economic Development, Russian Ministry of Finance, the Commerce and industry Chamber of the Russian Federation and the Moscow region, regional authorities, major associations and partnerships, representing the interests of participants in the industry and the business community.

Presenters highlighted the importance of the implementation of environmental responsibility, both at the state level and at the level of each enterprise and the citizen. Therefore it is extremely important to ensureall the necessary conditions, including the improvement of the national legislation, its harmonization with international standards, as well as to stimulate the development of business and citizens' participation by reducing the tax and administrative burden. In this regard, especially it noted the role and the need to abolish the personal income tax on citizens' income from secondary resources.

This legislative initiative was dedicated to the first session of the round table. The presentation was made by the co-moderators broadcaster RBC TV Igor S. Vittel.The bill was previously developed with the participation of government and business. The initiative was approved by the Ministry of Environment, Ministry of Economic Development, Industry and Trade Ministry of Russia and other departments. №1039273-6 bill was submitted to the State Duma of 7 April 2016, and expects the first reading in the autumn session. It was proposed changes in Article 217 of the Tax Code "Income not subject to taxation" - inclusion in the list of tax-exempt income received by citizens from the delivery of waste paper.

Report of the first speaker, the Director of NP NSED "RUSLOM.KOM" Kovshevny Viktor Viktorovich, including an overview of the industry processing of scrap and waste of ferrous and nonferrous metals and arguments about the need to abolish the personal income tax on income derived from the sale of scrap and waste of ferrous and nonferrous metals. National Association, which was represented by VV Kovshevny includes industry enterprises, the total of which amounts representes 75% of the scrap market.

According to the speaker, the loss of the state budget from this tax measure for only scrap market are 27 billion. Rubles. annually. And if you take into account the waste management industry as a whole, this figure is closer to $ 1 trillion. rub. taking into account the cumulative effect.

This significantly reduces the motivation of citizens to the delivery of raw materials, and increase the economic and legal risks of the industry, which are subject to fines penalties due to the imperfection of the tax administration.

Also, a presentation on the need to implement the initiative was made by Mr Senturin Alexey, executive director of NP "Russian Steel", the Association of Metallurgists, the members of which produce a total of 98% iron and 90% of Russian steel. He drew attention to the environmental dimension of issue. of scrap stocks in the country and reduction of the collection of scrap "on the ground" is very important to ensure the provision of raw material of metallurgical enterprises. The use of scrap in the steel production process cycle times in reducing carbon dioxide emissions into the atmosphere, significantly reduces energy consumption, saves raw material resources of the planet (iron ore, coal and water), and encourages the development of innovations in the field of electric steel production.

Mr Guryanov Andrey M. General of SRO' Association «League of PM .Director made a presentation on the abolition of personal income tax on income received by citizens from the date of the disposal of waste paper, , ." He noted that the collection of personal income tax on secondary materials is a violation of constitutional rights of citizens, as the situation is in fact double taxation. A citizen who has bought, for example, cookies in a carton already pays for the packaging, and purchasing of goods. Therefore, the tax payment to the state for the implementation of this package individual is explicitly unnecessary and illogical legal requirement. According to the speaker, the abolition of personal income tax will help to increase the collection of waste paper with 3.5 million. Tons to 9 million. Tons for the year. This will give businesses an incentive not only paper recycling industry, which has recently experienced a deficit of waste paper, start loading capacity more actively and to invest in the production, but also help improve the environmental situation and conservation of forest resources. After all, the use of 1 ton of recycled paper allows to save 10 trees, and the use of 9 million tons of waste paper per year will save as much as 90 million trees annually.

As part of the discussion for the abolition of personal income tax in the field of secondary materials presentaions were made by Semiletova Elena, Senior Advisor to the Office of Natural Resources of the State Duma Committee, Environment and Ecology, and Sergey Zakharov, Chairman of the Industry Committee of the Chamber of Commerce of the Moscow region.

The second session was devoted to updating the classification NACE and JECFA code to display the actual activities of enterprises engaged in recycling of secondary resources in the implementation of producer responsibility in accordance with Article 24.2 of the Federal Law №89-FZ "On Production and Consumption Waste" (as amended on 29.12.2015 ).

The session was opened by Alexander Onischuk, president of the Association of Trading Companies and Manufacturers of Consumer of Electronic and Computer Equipment. The performance was dedicated to improve the efficiency of interaction of producers and processors of waste and the implementation of producer responsibility under the new legal changes.All the necessary conditions, including the improvement of the national legislation, its harmonization with international standards, as well as to stimulate the development of business and citizens' participation by reducing the tax and administrative burden. In this regard, especially it noted the role and the need to abolish the personal income tax on citizens' income from secondary resources.

This legislative initiative was dedicated to the first session of the round table. The discussion was co-moderators broadcaster RBC TV Igor S. Vittel. The bill was previously developed with the participation of government and business. The initiative was approved by the Ministry of Environment, Ministry of Economic Development, Industry and Trade Ministry of Russia and other departments. №1039273-6 bill was submitted to the State Duma of 7 April 2016, and expects the first reading in the autumn session. It proposes changes are assumed to Article 217 of the Tax Code "Income not subject to taxation" - inclusion in the list of tax-exempt income received by citizens from the delivery of waste paper.

According to the speaker, the loss of the state budget from this tax measure only the scrap market are between 27 billion. Rubles. annually. And if you take into account the waste management industry as a whole, this figure is closer to $ 1 trillion. rub. taking into account the cumulative effect.

This significantly reduces the motivation of citizens to the delivery of raw materials, and increase the economic and legal risks of the industry, which are subject to fines and penalties due to the imperfection of the tax administration.

Also, the need to implement the initiative made Senturin Alexey, executive director of NP "Russian Steel", the Association of Metallurgists, the members of which produce a total of 98% iron and 90% of Russian steel. He drew attention to the environmental dimension of this issue. scrap stocks in the country are reduced and collection of scrap "on the ground" is very important to ensure that the raw material of metallurgical enterprises. The use of scrap in the steel production process cycle times in reducing carbon dioxide emissions into the atmosphere, significantly reduces energy consumption, saves raw material resources of the planet (iron ore, coal and water), and encourages the development of innovations in the field of electric steel production.

On the abolition of personal income tax on income received by citizens from the date of the disposal of waste paper, made Guryanov Andrey M., Director General of SROs Association "League of the PM." He noted that the collection of personal income tax on secondary materials is a violation of constitutional rights of citizens, as the situation is in fact double taxation. A citizen who has bought, for example, cookies in a carton already pays for the packaging, purchasing goods. Therefore, the tax payment to the state for the implementation of this package individual is explicitly unnecessary and illogical legal requirement. According to the speaker, the abolition of personal income tax will help to increase the collection of waste paper with 3.5 million. Tons to 9 million. Tons for the year. This will give businesses an incentive not only paper recycling industry, which has recently experienced a deficit of waste paper, start loading capacity more actively and to invest in the production, but also help improve the environmental situation and conservation of forest resources. After all, the use of 1 ton of recycled paper allows to save 10 trees, and the use of 9 million tons of waste paper per year will save as much as 90 million trees annually.

As part of the discussion for the abolition of personal income tax in the field of secondary materials were Semiletova Elena, Senior Advisor to the Office of Natural Resources of the State Duma Committee, Environment and Ecology, and Sergey Zakharov, Chairman of the Industry Committee of the Chamber of Commerce of the Moscow region.

He opened the session Alexander Onischuk, president of the Association of Trading Companies and Manufacturers of Consumer Electronic and Computer Equipment. The performance was dedicated to improving the efficiency of interaction of producers and processors of waste and the implementation of producer responsibility under the new legal changes.: RUSMET

The Chairman of the Industry Committee of the Chamber of Commerce of the Moscow region, Sergey Zakharov, noted the need to implement the provisions of # 488-FZ "On industrial policy in the Russian Federation", in which the organization of the collection and disposal of waste is an industry, but in fact is not reflected in the statistics codes - NACE (National Classification of economic activities) and JECFA (the All-Russian qualifier of production). For the development of the industry is necessary to link the existing laws on waste management (№89-FZ and №458-FZ), as well as approaches to the use and development of the FWCC to the Federal Law "On Industrial Policy in the Russian Federation."

Lyubov Melanevskaya, Executive Director of "RusPEK", made a presentation about the problem of the application of codes and implementing responsibility for utilization in the production of packaging. She proposed to optimize the classification of waste, to unify approaches and terminology in statutory regulations in order to prevent misunderstandings and the risk of the implementation of the packaging producer the right to an independent waste management as provided by federal law №89-FZ.

His proposal for the introduction of the relevant NACE and JECFA in paper recycling has made Deputy Executive Director of the Association of SROs "Liga PM" Nikita Zakharov. In his presentation, it was noted that the formation of a new branch of waste management is necessary to introduce new codes of NACE and JECFA to the industry appeared "on the radar" for the state statistics and accounting. These codes will be able to track the state has the actual volume of the industry, its dynamics. And most importantly,is the new codes JECFA, on waste paper and cardboard, which are now have their own code of FWCC and waste are to be recognized as a raw material for further production, and no restrictions on treatment of them is not required.

He also noted that according to №458-FZ, transport, recycling and waste disposal hazard classes 1-4, Rosprirodnadzor is necessary to obtain a license. As some waste containing a beneficial components and recyclable, have 4 class of danger, the companies that work with them, too, must obtain a license, making the threshold of the entrance to the market is high, and the implementation of the provisions of a new law banning the burial of useful fractions unrealizable. To increase the amount of recyclable materials collected, particularly waste paper, and as a result, reduce the cost of raw materials for the processors, it is necessary to simplify the system for small and medium-sized businesses.

Senior Manager of Corporate Management Team and the sustainable development of KPMG, Ivan Segundovich Barsola, shared his experience of working with NACE and JECFA, which actually does not exist for the industry waste, and proposed to focus on the existing HS system, which in fact was they used to estimate the amount manufactured and imported products for which the law provides for extended producer responsibility.

During the discussion of communication on the need for support and updating NACE JECFA, as well as additional proposals also expressed by representatives of Ministry of Economic Development, Head of the Association of APET, Commissioners VA Myasoedova Vera V., Senior Researcher, Institute of Chemical Physics RAS FGBUN and others.

The final question of the round table was the introduction of compulsory self-regulation in the sector of processing of scrap and waste of ferrous and nonferrous metals.

Theme made Sharuda Alexander, Vice-President of NP NSED "RUSLOM.KOM". He noted that the introduction of compulsory self-regulation in the field of lomopererabotki necessary to cleanse the scrap market from illegal players representing a threat to the economy and national security. The bodies of the license control can not solve this problem, on the contrary there is a frequent man-made disasters, and crime associated with illicit trafficking of scrap. work is carried out by the Russian Government to reduce the number of licensed activities in the formation of effective institutions of self-regulation, which can be transferred to some of the functions performed by the state. This is stated in the Concept of perfection of mechanisms of self-regulation, approved by Decree of the Government of December 30, 2015 № 2776-p. In industrialized countries, all that relates to the production or processing of waste is the responsibility of industry associations. These associations develop and monitor compliance with industry standards and are responsible for the admission to the market companies.

Industry community of scrap processors and metallurgists together with government agencies has developed appropriate draft of federal law "On Amendments to Certain Legislative Acts of the Russian Federation in connection with the introduction of self-regulation in the field of recycling of scrap and waste of non-ferrous and (or) ferrous metals". Changes expected to be made to the number 89-FZ "On Production and Consumption Waste", Chapter 14 of the Code of Administrative Offences, № 99-FZ "On Licensing Certain Types of Activities"

During the discussion there were proposals and recommendations on this issue by Zhukov Vladislav Vladimirovich - Deputy Chairman of the RF CCI Committee on Environment and Ecology, General Director of LLC "LEVEL" Nekliudov Vitaly Yuryevich, and representatives of the State Duma Semiletova Elena Viktorovna.

The final performance was a report Zhukov Vladislav Vladimirovich on state support and benefits business in the field of waste management.

The outcome of the roundtable was a decision to support the bill №1039273-6 concerning the abolition of personal income tax on income derived by individuals from the sale of recycled paper. It was also approved to supplement the abolition of personal income tax and for ferrous and non-ferrous metals.

It was noted that the issues of updating the classifications NACE and JECFA require the active collaboration of representatives of business and government to achieve qualitative changes in the waste management sector in the run-up to the year of Ecology.

In conclusion, it was noted an urgent need for further work on the issues considered in conjunction with the Chamber of young legislators, with the support of the Federation Council for the development of the industry of waste management in the Russian Federation.

Source: HOUSE OF YOUNG LEGISLATORS IN THE FEDERATION COUNCIL OF THE FEDERAL ASSEMBLY OF THE RUSSIAN FEDERATION.