Waste Hierarchy - Incentives For 3R

Incentives For 3R

The 3R’s of reduce, reuse and recycle have been considered to be a base of environmental awareness and a way of promoting ecological balance through conscious behaviour and choices. It is generally accepted that these patterns of behaviour and consumer choices will lead to savings in materials and energy which will benefit the environment.

In this context it may be enquired whether certain economic instruments may be considered to further strengthen these behaviours and choices. An example may be to reduce the sales tax or value added tax on goods that are made by recycling used materials, such as paper, plastics, glass, metals. Another example may be to reduce sales tax or value added tax on second-hand goods, which may include books, clothes, house-hold gadgets, bicycles, cars and automobiles, office equipment, medical and scientific equipment, telecommunication equipment, agricultural equipment, industrial and manufacturing equipment, boats, ships, trains and trams, aeroplanes, oil rigs, and so forth.

An additional approach may be to reduce the interest rates on the financial loans, which companies avail of, for their commercial activities in the recycling, re-use and resale of used material and equipments.

It is plausible that this may have a significant impact on consumer behaviour, and may strengthen those sections of the economy and trade that are associated with such goods and services. Additionally, this would be consistent with supporting consumer behaviour and choices that are beneficial for the environment and for the economy.