Environmental Levies
In Barbados, the Environmental Levy Act, 1996, seeks to promote efficient solid waste management and implement the Polluter-Pays Principle by defraying costs of waste collection and disposal of imported goods. The Act provides that a tipping fee of $40.00 per tonne of waste deposited in a landfill (to be charged at the landfill). The Act also imposes an environmental levy on a wide range of goods including:
- a rate of $10.00 per unit for motor vehicle tires, and $1.00 per unit for other types of tires; and
- a 1% levy on all goods imported in containers of plastic, glass, metal, or paperboard, in addition to empty containers imported made of plastic, glass, metal, or paperboard.
Businesses engaged in recycling activities are to receive the same concessions as those granted to manufacturers on machinery, spare parts, or equipment. The Comptroller of Customs administers the Act. Revenues generated from the Environmental Levy are deposited in the Consolidated Fund.
For more information, contact Captain Randolph Straughn of the Customs Department cheryl.harewood@customs.gov.bb or Mr. Ricardo Marshall in the Ministry of Health solid@sunbeach.net
Tax Incentives for Solar Energy and Energy Conservation
Barbados has developed a variety of tax incentives to promote solar energy and energy conservation. As with many other Small Island Developing States concerned about climate change, measures such as these are important symbolic measures (they do not emit a large proportion of the world’s greenhouse gases). However, such tax incentives pre-date the UNFCCC and were motivated by primarily by economic factors. A study in the early 1970s (James Husbands, Managing Director, Solar Dynamics Ltd, “A Review of the Costs of the Tax Incentives to the Solar Industry in Barbados”) found that tax incentives for solar energy could save the island an estimated US$50,000,000 of energy in less than two decades, with a cost to the Government of $6,600,000 in tax revenues. This cost-benefit analysis has been a major influence in the development of the solar energy industry in Barbados.
The decision to implement these tax incentives reflected a belief that the incentives were mutually beneficial for customers, service providers, and the Government. In 1974, the Fiscal Incentives Act was enacted, and it included exemptions on the raw materials for solar water heaters from the 20 percent import duty, and simultaneously a 30 percent consumption tax placed on conventional electric water heaters.
In 1980 the Income Tax Amendment provided a deduction of the full cost of a solar water heater installation. This deduction was in place until 1992 and was suspended due to IMF recommendations for reform. Starting in 1996, the solar water heater deduction was re-established as part of a personal home improvement allowance deduction for (but not limited to) energy- or water-saving devices, and solar water heaters. This deduction is subject to a maximum of BBD$3,500 (approximately US$1,730) per year.
For more information, contact Mr. William Hinds or Mr. Richard Goddard at the Ministry of Energy and Public Utilities at energydiv@sunbeach.net
Returnable Containers Act
The Returnable Containers Act, 1985, encourages dealers of beverages in Barbados to use returnable containers. The primary objective of this Act is to facilitate the bottle-return scheme for glass and plastic bottles. The Act, which was amended in 1991, provides for the sale of beverages in beverage containers; the payment of a deposit on beverage containers, a refund for the return of these containers, and the final disposal of unused or unusable containers. The reduction of widespread littering on the island with plastic and glass bottles is thought to have been a direct result of this Act and the bottle refund programme initiated by several supermarkets and recyclers.
The Act covers beverage containers for carbonated drinks, non-carbonated soft drinks, mineral water, soda water, beer, and other malt beverages. The Act makes provision for the return of glass, metal, aluminium, steel or plastic bottles, cans, or jars which contain one gallon (3.8 L) or less at the time of sale of a beverage intended for use or consumption in Barbados.
The Act requires retailers (who sell beverages) to accept, from any person requesting a refund, any empty beverage containers of the type (design, shape, size, colour, composition, and brand) sold to him by the distributor. The retailer may refuse to accept any empty beverage container for which the refund value is not fixed by the Act, damaged containers, or containers that contain a significant amount of foreign materials.
The Act sets the current refund values Act at 10 Barbados cents (approximately US$0.05) for PET bottles and 20 Barbados cents (approximately US$0.10) for glass bottles. The Act also provides that distributors have to reimburse dealers or operators of bottle redemption centres for the refund value plus a handling and processing fee that is not less than 20 percent of the refund value.
For more information, contact Mr. Ricardo Marshall in the Sewerage and Solid Waste Project Unit of the Ministry of Health at solid@sunbeach.net