Act LVI of 1995
on Environmental Protection Product Charges and the
Environmental Protection Product Charges of Certain Products
Chapter I
The Purpose of the Act
Section 1
The purpose of the Act is to generate the funds necessary for the abatement and prevention of
environmental damage caused by products loading or posing hazard directly or indirectly to the
environment or some component thereof during or following the manufacture or use of the said
products, as well as to contribute to the abatement of environmental pollution and the
encouragement of activities aimed at the economical management of natural resources.
The Scope of the Act
Section 2
(1) For products subject to product charges as defined in subsection (3) - including products
put in commercial distribution jointly with other products or as parts of other products
a) the first domestic distributor or user for own purposes of products subject to product charges
and manufactured in Hungary as well as
b) the importer of products subject to product charges [paragraphs a) and b) hereinafter
together: obligor] shall pay environmental protection product charges (hereinafter: product
charges).
(2) The distributor of products subject to product charges shall pay a fine corresponding to one
and a half times the product charges to the Central Environmental Protection Fund (hereinafter:
Fund), if no product charges have been paid for the products it distributes that are burdened by
the obligation to pay product charges.
(3) For the purposes of this Act, products subject to product charges shall be:
a) fuels (directly polluting products),
b) tyres,
c) cooling apparatuses and refrigerants,
d) packing materials,
e) batteries,
[paragraphs b) through e) hereinafter together: waste generating products].
Rules of Procedure During the Payment of Product Charges
Section 3
(1) With the exception of the case described in subsection (2), the obligation to pay product
charges shall arise on the trade date shown on the invoice made out when a product subject to
product charges and manufactured in Hungary is sold for the first time in Hungary or on the date
when the use thereof for personal purposes is accounted for as expenditure.
(2) The provisions of Act LXXVIII of 1991 on consumption tax and consumer price subsidy
(hereinafter : Cps.) shall apply to the obligation to pay product charges on fuels.
(3) The obligated shall pay the product charges (the product of the basis of product charges
and the rate of product charges) determined on the basis of the quantity of products subject to
product charges (the basis of product charges), sold or used for own purposes in Hungary, to the
account held by the Inland Revenue Office (hereinafter: taxation authority), indicated in the official
gazette of the Ministry of Finances and shall present returns on the obligation to pay product
charges to the taxation authority, in accordance with the provisions of Cps. and those of
consumption tax of the Act on Taxation.
(4) The taxation authority shall check the fulfillment of the establishment and payment of the
product charges paid for products subject to product charges and put in commercial distribution
or used for personal purposes in Hungary.
Section 4
(1) In the case of imported products subject to product charges, the obligation to pay product
charges shall arise on the date when the products subject to product charges are cleared through
the customs.
(2) The National Headquarters of the Customs and Finance Guard (hereinafter: customs
authority) shall establish (impose) with a decision the obligation to pay product charges when the
products are cleared through the customs for domestic distribution or in a procedure with customs
benefit (licence brand), as well as during measures taken by the customs authorities for domestic
distribution, considered the same as customs clearance, on the basis of the rules of procedure of
the Taxation Act pertaining to the taxes burdening product imports.
(3) The customs authority shall transfer the product charges paid to, (collected) or encashed by
the customs authority to the Fund by the 15th day of the month following the subject month.
Payment Benefits for Product Charges
Section 5
The obligor shall pay one half of the product charges in the case of products subject to product
charges that are entitled to bear the trade-mark "environmentally friendly", in accordance with the
provisions of a separate legal rule (payment benefits for product charges).
Use of the Amount Collected Through Product Charges
Section 6
In issues not regulated in this Act, the product charges may be used in accordance with the
contents of Chapter IV on the Central Environmental Protection Fund of Act LXXXIII of 1992 on
Certain Separated State Funds (hereinafter: SFA). At least 75% of the part thereof qualifying as
revenues with restricted use as defined in SFA may be spent primarily on the support of goals
and objectives specified in subsection (1), while the remainder, for those specified in subsection
(2), unless the chapters on the individual product charges provide otherwise.
(1) Tasks of environmental protection in accordance with Section 31, subsection (1), paragraph
a) of SFA:
a) a single contribution to investment projects and developments
aa) preventing environmental pollution caused and hazards posed by products subject to
product charges or by substances released therefrom, abating the load to the environment by the
same, and aiming at the establishment of systems monitoring the level of loading,
ab) encouraging the development of environmentally friendly consumer behaviour and the use
of environmentally friendly products subject to product charges,
ac) promoting the collection of wastes generated from products subject to product charges and
serving the recuperation and safe disposal thereof;
b) provision of regular assistance for the
ba) reuse,
bb) recycling,
bc) in the absence of reuse and recycling, for energy recovery,
bd) collection
of products subject to product charges that generate waste or substances released therefrom.
(2) Tasks of environmental protection in accordance with Section 31, subsection (1),
paragraphs b) and c) of SFA:
a) provision of funding for projects serving the prevention and clean-up of environmental
damage caused or hazard posed by products subject to product charges or by substances
released therefrom, to the extent specified in SFA,
b) establishment of systems preventing environmental pollution and monitoring the level of
loading by products subject to product charges or by substances released therefrom,
c) development of personal and material conditions for measures taken by the central
government to promote the efficiency of utilization,
d) influencing the environmental attitude of the public,
e) to provide funding for the collection and use of the product charges and the control thereof.
Rules for Regular Assistance
Section 7
(1) The assistance defined in Section 6, subsection (1), paragraph b) may be provided through
tenders, in conformity with the provisions of SFA on assistance to be provided through tenders
and in accordance with the contents of the annual Guidelines for Assistance.
(2) The entitlement for regular assistance of the magnitude specified in the annual Guidelines
for Assistance may be acquired through tenders for up to three years. In the case of
developments promoting the implementation of nationwide government or sectoral programmes,
the Fund Manager may set the period of entitlement at four years.
(3) Regular assistance awarded through tenders may be applied for quarterly, by the 15th day
of the month following the quarter, subsequently, in accordance with the quarterly report.
(4) Regular assistance may be applied for on the basis of the quantity of waste recuperated or
used for energy recovery.
(5) The Fund Manager shall transfer the annual assistance of the magnitude specified in the
annual Guidelines for Assistance to the entitled party within 30 days reckoned from the receipt of
its justified application.
Section 8
The Fund Manager shall check the fulfilment of the establishment and legitimate use of the
regular assistance, by appropriately applying the provisions contained in the chapters of the
Taxation Act on control, legal consequences and the tax administration procedure.
Chapter II
Environmental Protection Product Charges on Tyres
Section 9
(1) Product charges shall be paid on the tyres of motor vehicles, tractors used in agriculture,
slow vehicles, (semi-) trailers, and aircraft (hereinafter: PCT).
(2) PCT shall also be paid for tyres imported through passenger and gift traffic.
(3)
Section 10
(1) The basis for PCT shall be the mass of the tyres.
(2) The rates of PCT are contained in Schedule No. 1.
Chapter III
Environmental Protection Product Charges on Packing Materials
Section 11
(1) Product charges shall be paid on packing materials (hereinafter: PCPM).
(2) Exemption to the extent defined in subsection (3) may be obtained from a part of PCMP,
under terms specified in a separate legal rule, with respect to which the obligor collects, buys
back and reuses, recycles or uses for energy recovery (hereinafter together: treats) its packing
material subject to product charges. A contract shall qualify as treatment that is concluded by the
manufacturer or importer of the packing material (primary obligor) with an organization coordinating the treatment as well as with the buyer of the packing material sold, in which the
organization co-ordinating the treatment or the buyer of the packing material (secondary obligors)
assumes the obligation to pay the product charges from the primary obligor.
(3) Full exemption may be obtained from PCMP, if the obligor has treated packing materials of
a quantity corresponding to the obligatory proportion of treatment specified in a separate legal
rule. When the exemption is determined, the ratio of the treated packing materials and the
obligatory proportion of treatment shall be taken into consideration.
(4) The organization co-ordinating the treatment specified in subsection (2) shall be a legal
entity that organizes and carries out the treatment of the packing materials and which was
established with the participation of the manufacturers and distributors of the packing materials.
Section 12
(1) The basis for PCPM shall be the mass of the packing materials.
(2) The rates of PCMP are contained in Schedule No. 2.
Section 13
(1) PCPM shall qualify as revenue with 100% restricted use.
(2) At least 85% of PCPM shall be spent on the goals defined in Section 6, subsection (1) including also the assistance for the establishment of organizations co-ordinating the treatment.
(3) In case the objectives mentioned in Section 6, subsection (1) are supported from PCPM,
the Guidelines for Assistance shall be developed and the tender shall be awarded on the basis of
the recommendation of an Advisory Council defined in a separate legal rule.
Chapter IV
Environmental Protection Product Charges on Cooling
Apparatuses and Refrigerants
Section 14
Product charges shall be paid on cooling apparatuses and refrigerants (hereinafter: PCC).
Section 15
(1) The basis of PCC shall be,
a) in the case of cooling apparatuses, the number of units of cooling apparatuses,
distinguished by the nominal refrigeration volume and the quantity of the refrigerant thereof,
b) in the case of refrigerants, the mass of the refrigerant.
(2) The rates of PCC are contained in Schedule No. 3.
(3) The method of determining PCC are contained in Schedule No. 4.
Chapter V
Environmental Protection Product Charges on Fuels
Section 16
Product charges shall be paid on fuels (hereinafter: PCF).
Section 17
(1) The basis of PCF shall be the compensated volume of the fuel, converted to the
temperature of 15’C.
(2) The rates of PCF are contained in Schedule No. 5.
Chapter VI
Environmental Protection Product Charges on Batteries
Section 18
(1) Product charges shall be paid on batteries (hereinafter: PCB).
(2)
Section 19
(1) The basis of the product charges shall be the mass of the batteries.
(2) The rates of PCB are contained in Schedule No. 6.
Closing Provisions
Section 20
For the purposes of this Act,
a) "product charges": payments made to the Central Environmental Protection Fund to support
activities performed for the abatement and prevention of environmental loading on the basis of
the manufacture and import of products that especially load or pose special hazard to the
environment or some component thereof during or following the use of the said products,
b) "reuse": the repeated use of used waste-generating products,
c) "recycling": the use of the materials of used waste-generating products for the manufacture
of some product,
d) "energy recovery": the incineration of waste-generating products to recuperate energy, by
observing the relevant regulations on environmental protection,
e) "safe disposal": an activity specified in a separate legal rule,
f) "putting in commercial distribution": the sale of products subject to product charges, including
also the distribution thereof as part of other products or together with other products,
g) "import": unless this Act provides otherwise, the provisions of the Act on Consumption Tax
and Price Subsidies shall be applied for products subject to product charges,
h) "packing material": a temporary wrapping of specific material and structure designed for
containing or forming one unit of product(s) or smaller packing materials and generally
manufactured within the framework of industrial activities.
Section 21
(1) The Minister of Environmental Protection and Regional Planning shall be authorized to
establish, in agreement with the concerned ministers, the detailed rules on the delimitation and
classification of the scope of products subject to product charges, the publication of the ITJ
numbers and customs-tariff numbers thereof, the detailed conditions of the payment of product
charges and fines, the provision of benefits as well as regular assistance, the obligation to report,
the requirements of keeping records and the use of the product charges.
(2) The Government shall be authorized to establish detailed conditions for having recourse to
exemption from PCPM, the obligatory proportion of treatment, and the composition and
responsibilities of the Advisory Council in a decree by 30 September 1995 at the latest.
(3) The Government shall be authorized to establish in a decree the quantity of used tyres that
may be imported.
Section 22
Section 29, subsection (1), paragraph b) of Act LXXXIII of 1992 on Certain Separated State
Funds shall be complemented by the following subparagraphs bb) through be):
(The revenue sources of the Fund:)
"bb) environmental protection product charges on tyres,
bc) environmental protection product charges on packing materials,
bd) environmental protection product charges on cooling apparatuses and refrigerants,
be) environmental protection product charges on batteries;"
Section 23
The rate and amount of the environmental protection product charges paid shall be shown by
item and in total in the invoice or in the annex of the invoice.
Section 24
(1) This Act shall come into force on the 90th day reckoned from its promulgation - with the
exception of the contents of subsection (2) - and, simultaneously, the following shall cease to
have effect: Act XVIII of 1992 on Environmental Protection Product Charges on Fuels, Section 52
of Act CXI of 1993 on the 1994 Budget of the Republic of Hungary, Section 29 of Act LXV of 1994
on the 1994 Supplementary Budget of the Republic of Hungary, and Sections 60 and 61 of Act
CIV of 1994 on the 1995 Budget of the Republic of Hungary.
(2) The obligation to pay product charges on packing materials and batteries shall come into
force on 1 January 1996, while the obligation to pay product charges on the packing materials of
pharmaceuticals, on 1 January 1997.
(3) PCPM shall cease to be in force with the coming into force of Acts to provide for packaging
wastes and waste management.
Schedule No. 1 to Act LVI of 1995
Rates of Product Charges on Tyres
1. On new tyres (including also tyres
imported for regrooving in quantities
specified in a separate legal rule)
2. For imported used tyres
HUF 30/kg
HUF
120/kg
Schedule No. 2 to Act LVI of 1995
Rates of Product Charges on Packing Materials
Packing material
Plastic
Rate of
product
charges on
the packing
material
(HUF/kg)
10
Combined
8
Aluminium
5
Metals (except aluminium)
4
Paper, wood, textile of natural origin
3
Glass
2
Other
5
Schedule No. 3 to Act LVI of 1995
Rates of Product Charges
I. Rates of Product Charges on Cooling Apparatuses*
Nominal refrigeration volumet
120 litres or less
t (HUF per
unit)
600
120.01 to 250.00 litres
1080
over 250.01 litres
2800
Quantity of refrigerant
k (HUF per
unit)
0.50 kg or less
150
0.51 kg to 2.00 kg
270
over 2.01 kg
700
II. Rates of Product Charges on Refrigerants Subject to Product
Charges
Refrigerant subject to product
charges
Rate of
product
charges
HUF/kg
Mixture of CFC and hard Freon
250
Mixture of HCFC and soft Freon
100
Schedule No. 4 to Act LVI of 1995
Determination of the Calculated Rates of Product Charges on
Cooling Apparatuses
T = s*(t+k)
T: calculated product charges on cooling apparatuses (HUF)
t: rate of product charges depending on the nominal refrigeration volume in accordance with
Schedule No. 3 (HUF per unit)
k: rate of product charges depending on the quantity of the refrigerant in accordance with
Schedule No. 3 (HUF per unit)
s: multiplier with a value of
- 0.5, if the cooling apparatus has the trade-mark "environmentally friendly" used in Hungary,
- 1.5, in case of imported used cooling apparatuses,
- 1.0 in all other cases.
T=s*1.25*t, if the cooling apparatus is operated with a refrigerant subject to product charges
and can be characterized only by its nominal refrigeration volume.
T=s*t, if the cooling apparatus is operated with a refrigerant not subject to product charges and
can be characterized only by its nominal refrigeration volume.
T=s*5*k, if only the quantity of the refrigerant is known with respect to the cooling apparatus (in
particular, refrigerators installed as parts of a system, drink refrigerators, air conditioners).
T=s*4*k, if the cooling apparatus cannot be characterized by its nominal refrigeration volume,
and there is no refrigerant subject to product charges in the cooling apparatus. In this case k is
the quantity of the refrigerant not subject to product charges (in particular, refrigerators installed
as parts of a system, drink refrigerators, air conditioners).
* Air conditioners and systems thereof, closed-system liquid refrigerators, closed-system liquid
refrigerators with Freon refrigerant; closed-system refrigerators with ammonium refrigerant,
serving various refrigeration purposes; refrigerators with compressor; ice machines; absorption
type, steam ejector type refrigerators and refrigerators based on other uses of heat; other
refirgerators; commercial refrigerators; domestic electric refrigerators; other domestic electric
refrigerating equipment.
Schedule No. 5 to Act LVI of 1995
Rates of Product Charges
Rates of Product Charges on Fuels
Petrol
Gas oil
HUF
2.00/litre
HUF
2.00/litre
Schedule No. 6 to Act LVI of 1995
Rates of Product Charges on Batteries
Batteries
HUF
38.00/kg