The Decree-Law No. 877 creates the Redeemable Tax on Non-Returnable Plastic Bottles (PET – Polyethylene Terephthalate) that had been eliminated by the sentence of unconstitutionality of the Law of Environmental Promotion and Optimization of State Revenues on January 12, 2022, which is summarized as follows:

• The same rules and regulations that were in force until January 12, 2022 by means of the Law of Environmental Promotion and Revenue Optimization are maintained; therefore, the Decree-Law seeks to preserve said tax redeemable in favor of natural or juridical persons engaged in PET recycling.
• The taxpayers are the bottling companies and those who import beverages in PET bottles.  An exception is made in the case of dairy products or medicines bottled in PET.
• The tax is generated at the bottling of beverages in non-returnable PET plastic bottles, which includes alcoholic, non-alcoholic, carbonated, non-carbonated beverages and water.   In the case of imported beverages under the consumption regime, the tax is generated at the customs clearance.
• The taxable base is the number of bottled or imported units and the rate per unit is US$0.02, which will be returned only to the transformer recycler.
• The concept of non-deductibility of such tax is maintained.
• The Decree-Law is effective as of September 21, 2023.

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