Administrative fees that beverage producers and importers must pay to the BCRS have been dramatically increased, with the company blaming rising operational costs.
The rate increase is unrelated to the 10c per bottle or can that consumers are charged as part of the recycling scheme, which remains unchanged. It instead concerns separate fees that producers and importers are charged for each beverage container placed on the market.
The increased fees will kick in on Saturday, February 1 and will apply to all containers subject to the BCRS-run beverage collection and recycling scheme.
Rate increases range from a 54% hike per bottle for coloured glass containers to a 143% increase in the cost charged to process aluminium containers (from 0.7c/0.74c per container to 1.7c/1.8c).
Costs to process plastic and steel containers will also rise by amounts ranging from 62% to 111%.
How rates for drinks producers and importers will change.The price increases were communicated to producers and importers in December but only came to public attention following reports that the price of bottled water was poised to increase by 7 cents per bottle due to a new “eco-tax”.
While BCRS administrative costs are rising, the increased rates per bottle are significantly lower than that cited 7c figure. As of Saturday, producers and importers will have to pay BCRS between 1.9c and 2c per clear PET bottle (up from 0.9c and 1c).
CE Malta: No eco-tax
In a statement, sectoral regulator Circular Economy Malta said it was “misinformation” to say any new taxes were being levied.
“The government is not introducing any new or additional taxes, including an eco-tax on any locally produced or imported beverages, including water. Reports of a new eco-tax are indeed false,” it said.
The 10c charge per bottle or can that consumers are charged remains unchanged, it said.
It remains to be seen whether the increase in BCRS administrative fees will lead to higher drinks prices for consumers. Beverage producers and consumers could opt to absorb the fee increases as operational costs. Or they could raise the prices of their products, effectively passing on those costs to end users.
BCRS justifies admin rate increases
BCRS – a not-for-profit entity made up of the country’s biggest beverage producers – says the increase in fees is necessary to ensure the scheme is financially sustainable.
“Operational expenses have continued to grow,” it said on its website. “These include higher collection rates, enhanced service quality measures, and rising compliance issues. Additionally, global recyclable waste prices fell sharply in 2023 and early 2024, further straining finances.”
“The increase in administration fees will cover the said increased costs and will support improved infrastructure, more efficient recycling processes, and the reduction of environmental impact caused by waste,” it said.
The company said it would also be stepping up enforcement efforts in the coming weeks, with more monitoring and compliance checks.
Company CEO Alan Meilak said the scheme was being damaged by fraud.
Some bottles and cans were not being registered with the scheme, he said, but consumers were still receiving a 10c refund when depositing them. That was hurting the scheme's bottom line, he said.
The BCRS scheme began operating in late 2022, as part of an EU-wide drive requiring all member states to operate a beverage recycling scheme.
The scheme effectively sees producers and importers charged an extra 10c – over and above administrative fees which are now being raised – per beverage container, with that 10c charge passed on to consumers.
Consumers can then recoup that charge by returning used containers at recycling stations dotted across the country or various outlets that accept returns.
Despite complaints from consumers and producers, the scheme has outperformed the minimum collection rates established in the law and in 2024 saw 84% of all relevant containers placed on the market returned for recycling. The target is to achieve a 90% collection rate by 2026.