A COMPARATIVE STUDY ON THE TAXATION OF WASTE DISPOSAL IN EUROPE

Abstract

Taxation can be used as a tool to promote sustainable waste management and recycling of industrial plastic, paper and glass; therefore, this article aims to assess the effectiveness of existing waste taxes by considering their effects on waste generation and disposal in Europe. In this context, a comparative study has been carried out to understand taxpayers- behaviours towards waste taxation, tax rates and methods preferred to calculate the amount of tax to be paid. Sustainable waste management is of particular importance for countries and requires effective investment and financing mechanisms. It can be argued that today-s tax systems are asked to contribute to sustainable development by eradicating poverty, reducing inequalities and using tax incentives to limit the amount of waste produced. This also means that tax systems, from time to time, may require to take more proactive Pigouvian roles. Collection of waste tax is mostly under the responsibility of local authorities, and these authorities may opt different methods, such as: Unit-Based Pricing (UBP) and pay-asyou-throw (PAYT) schemes, while calculating the amount of tax to be collected. Pigouvian taxes intend to discourage consumption of products that affect society and/or environment hazardously; therefore, it is argued that the waste taxes that are not inconformity with the Pigouvian approach should be updated because waste taxes should not only finance the service taken by the users(taxpayers), but also promote recycling and protect the environment and human health.