Industry welcomes ruling on NT container tax

The Federal Court’s findings that the Northern Territory Container Deposit Scheme (CDS) contravenes the Mutual Recognition Act 1992 (Cth) has been welcomed by both the Australian Food and Grocery Council (AFGC) and the Australian Beverages Council.

The Federal Court ruled that, from 4 January 2013, beverages in regulated containers that are manufactured outside NT may be sold in the NT without the need to comply with sections 13 or 14 of the Environment Protection (Beverage Containers and Plastic Bags) Act 2011.

Effectively, this means that the Northern Territory container tax does not apply to beverages manufactured in other states and sold in the Northern Territory.

“The decision validates the industry’s long-held position that the scheme was flawed,” said the Beverages Council’s CEO, Geoff Parker. “More importantly, the decision means that what was essentially another tax on containers doesn’t apply to beverages manufactured in one state but sold in the Northern Territory.”

“Industry reiterates, and has made numerous approaches to the Northern Territory Government, that there are better, cheaper and simpler solutions to reduce waste and boost recycling that don’t cost consumers and are easy to implement,” said AFGC CEO Gary Dawson. “The AFGC and its members remain ready to work with the government to roll these solutions out across the Territory.”

“In the context of rising input costs of power, water, wages and other bills going up so dramatically, the drink container tax in the Territory has been the last thing consumers, and businesses large and small, needed.”

The Northern Territory Government has sought to appeal the Federal Court’s ruling.