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Scientists propose tax incentives for waste paper collection

December 17, 2014

Scientists propose tax incentives for waste paper collection

Instead of wasting a lot of money burying or burning scrap paper, with the resulting environmental pollution, scientists say it would be better to spend funds on encouraging companies to collect and re-use scrap paper.

The Saigon Paper Corporation uses a high percentage of scrap paper in making finished products.

Cao Tien Vi, general director of the company, in September 2014, said the company decided to raise consumption paper capacity by threefold to 44,000 tons per annum, and raise industrial paper production capacity from 53,000 tons to 224,000 tons.

In order to get enough materials to fulfill the production plans, his company would have to increase the the proportion of scrap paper imports from 30 per cent to 50 per cent.

When asked why the company does not plan to use domestic scrap paper instead of imports, Vi said it was difficult to collect scrap paper from domestic sources, since collectors are not encouraged to do this.

If the company collects paper, the cost would be high because scrap paper comes from many different sources, while it would also have to pay for scrap paper classification as well. Besides, the fact that it cannot get a VAT refund when buying scrap paper from individuals would also push up production costs.

Read more at Eco-Business.

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