Starting July, food manufacturers in the Czech Republic will face a 13% increase in recycling fees for packaging materials like cardboard boxes and plastic bottles. The hike comes as lawmakers failed to halt the increase in time, drawing criticism from both food producers and retailers.
The fee increase stems from EKO-KOM, the country’s sole authorized packaging waste collection and recycling company, doubling its mandatory financial reserve from 25% to 50% of annual costs. Despite the Environment Ministry’s proposal to maintain lower reserve rates, parliament couldn’t complete the amendment review in time.
While food industry representatives warn of potential price impacts, particularly on lightweight products like cereals and beverages in PET bottles, economists suggest the effect on consumer prices will be minimal. Citfin economist Miroslav Novak estimates the impact at mere hundredths or low tenths of a percent.
The Czech Chamber of Food Industries views this as an unnecessary price increase that could have been avoided. Tomáš Prouza, president of the Trade and Tourism Association, criticized the move as “pure bureaucratic harassment,” noting that EKO-KOM is already financially stable.
Economist Vít Hradil from Investika suggests that companies are unlikely to use this increase as an excuse for additional price hikes, as consumers tend to be less forgiving of price increases tied to packaging costs compared to more widely understood factors like VAT changes.