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Ontario Computer Recycling Tax Rates Likely to Rise

01/24/10

  10:52:25 pm by wdawe, Categories: General

When I was poking around recently trying to find the rates for Phase 2 of the Ontario Computer disposal task I ran across http://www.ontarioelectronicstewardship.ca/pdf/fees/fee_setting_review_dec09.pdf. This document outlines some issues that have occurred in the first year of the program. It has has seen lower sales of covered items and lower volumes of materials collected. To refresh your memory refer to Ontario Computer Tax Kicks in April 1st which outlines the items covered by Phase 1 of the program in it's first year and the additional fee everyone in Ontario pays on computer equipment they purchase.

Some quotes along with my translation from bureaucrateze
OES will review the relative processing costs of portable computers and desktop computers on the basis that portable computers may attract higher per unit processing costs due to the mercury bulbs (designated hazardous material) that are contained in the displays.
Translation: "The tax rate for laptops will rise." 

and As sales of desktop computers continue to decrease, and sales of portable computers increase, the fees collected by Stewards to pay for material management will continue to drop, exposing OES to a deficit that will require a deficit recovery strategy in subsequent years.
Translation: "We need to raise the tax rate for laptops."

The document also suggest that the Collection Incentive of $165 per tonne paid to the people collecting the waste to $215 a tonne to make it more attractive for them to join the program and I assume increase the shortfall of 30% over the volumes the program has experienced so far. In creasing the incentive paid would suggest that fees charged to consumer to fund the program would have to rise to cover increased costs.

one last quote
OES’ proposed action is to model the revised fees based on a percentage factor decrease of approximately 15% of the Year 1 collection target in the Revised Plan. Despite the 30% decrease in first year of Phase 1, OES anticipates volumes of collected material to increase as a result of increased promotion and education, changes to the direct ship program and enhanced accessibility in Year 1.
Doesn't sound too bad until you read    
A 15% factor decrease in the collection target still represents an aggressive actual collection increase of 42% compared to current performance. 

An increase of 42% sounds pretty aggressive. Increased promotion and education sounds like it's going to cost more money too. More information on the fee setting process can be found here http://www.ontarioelectronicstewardship.ca/consultation/consultation.html. I'll update this post when the revised fees are announced on Jan. 28th and we'll see if I'm right or not.  
 

2 comments

It’s an aggressive way of implementing it, which is good.

07/07/10 @ 11:47
Comment from: Dwight T [Visitor]

Does the Recycling Fee apply to a “mouse” for a PC??

12/24/10 @ 01:47


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