Committee backs VAT exemption for deposit containers

The Finance Committee has backed a proposal to exempt deposit containers from value-added tax (VAT), KVF reports.

The committee noted that not all containers are returned and questioned where the VAT from the sale of unreturned containers goes. It also raised the possibility of creating a different deposit scheme from the one that has been in the works for years.

However, the committee said it would not be right to change the scheme again now. It should first be made to work, with any changes considered later, the committee said unanimously.

About 15,000 product types are currently included in the deposit scheme. The committee received the bill on September 29, and its second reading is scheduled for the parliamentary sitting this afternoon.