Are you planning to recycle wastes from business locations or recycling depots? This article can guide you to decide if financial incentives are essential for recycling enthusiasts for the best waste management solution. Finance is one of the challenges of most recycling businesses. In Australia, state and federal agencies give incentives like rebates, and tax credits to companies that recycle waste. These agencies believe that industries and companies would be all the more encouraged and motivated to partake in recycling initiatives if their efforts are recognized and rewarded. However, some of these companies don’t think it’s right to give financial incentives too. Let’s consider some priorities of this business and weigh the pros and cons of financial incentives associated with industrial and corporate recycling activities.
Recycling Reduces Wastes
In tackling climate change, people use innovative programs to encourage eco-friendly solutions. Since recycling is a trend in this aspect, it’s essential to offer incentives and encourage green practices. To reduce environmental pollution; governments and businesses are increasing investments in renewable energy.
Some state governments in the USA encourage energy-saving initiatives. Many people will clean their environment and recycle when they can get cash incentives. Government organizations and personnel have identified a surge in participation once financial incentives are put to motion. Some may consider this to be unethical, however, the rest may believe that the recycling plant and activities encouraged in their companies require financial investment to be effective which calls for financial recognition. If you care about our planet, show it by recycling products that are made from plastic and glass materials.
Recycling and waste management is a controversial topic for manufacturers and the government. In developing countries like Germany and the UK, there are waste disposal programs. These campaigns reward people that recycle and offer discounts to consumers of recycled products. One of the smartest ways of reducing waste is to reuse recyclable products. This may require companies to encourage their employees separately or companies to not take any efforts altogether due to the effective state efforts undertaken.
Why Shouldn’t Companies Offer Financial Incentives?
- A Small Surcharge Can Raise Awareness Levels
Many people think that everyone is responsible for the wastes they create. This school of thought doesn’t believe there should be financial incentives. Instead, they encourage companies to implement a surcharge policy. It’s an extra fee (deposit) for consumers that buy products in recyclable containers.
For example, the purchase of beer with bottles should attract a refundable deposit. When the consumers return the beer bottle to the recycling point, they will get their deposit. Adding surcharges could help to raise individual awareness, and it’s better than financial incentives. Assuming that the whole country is just going to partake in recycling initiatives independently can be far-fetched if strategic plans like these are not effectively implemented.
Why Should Companies Offer Financial Incentives?
Incentives for recycling might not favour manufacturers that produce and sell new products. For example, there are various air compressor manufacturing factories that engage in active recycling and reward every other industry that undertakes such initiatives. Recycled industrial air compressors can be of great use and impact on the environment and to the business through optimal utilization of resources. However, the industrial process of producing is hurting our planet. Climate change has been a global concern too. Here are some reasons that encourage financial incentives from companies.
- Depreciation Allowance
When companies buy equipment, they calculate their depreciation value annually. Usually, revenue agencies that encourage incentives for recyclable products offer these companies a tax allowance. This policy often applies to machines and equipment for renewable-energy production.
Many biogas converters and solar farms in India are benefiting from this depreciation allowance program. Usually, the depreciation allowance for these companies can get to 50 per cent.
- Income Tax Exemptions
When companies go green in many countries, they enjoy tax exemptions. The cost of importation of solar panels often comes with tax benefits. While consumers enjoy income tax credits when they purchase recycling equipment, unused credits can roll over to subsequent tax years.
It’s only proper for these companies to offer financial incentives to employees that support waste recycling programs. Entrepreneurs and their management should exempt these employees from paying certain income taxes.
- Sales Tax Exemptions
Companies that sell recycling equipment can encourage buyers by offering sales tax exemptions. A tax rate of 2% on the sale of energy-efficient product or machine is an example of a sales tax exemption programs. In America, recycling business owners that meet a minimum amount of investment can benefit from this sales tax exemption policy. And this has proven to work in their favour soon after implementation.
Pros of Recycling Business Waste
- It helps to protect the environment from carbon emissions
- It helps large corporates optimally engage in document destruction of confidential nature.
- The recycling of business wastes can generate employment opportunities for waste disposal agents
- This practice can reduce the financial burden of companies that pay taxes for using landfills.