ISLAMABAD: The recycling industry has called for tax incentives, green financing mechanisms and duty exemptions in Budget 2026-27, arguing that policy support is needed to strengthen waste collection systems and expand recycling infrastructure.
The proposals have been put forward by the CoRe (Collect and Recycle) Alliance, a multi-stakeholder platform comprising companies, recyclers, academic institutions, NGOs and development organisations focused on packaging waste management. In its budget recommendations, the alliance proposed State Bank-backed green financing for recycling and waste collection projects, a five-year tax holiday for new and existing recycling ventures, fiscal incentives for companies using recycled materials, and exemptions from taxes and customs duties on recycling equipment and services.
The alliance also proposed exemptions from General Sales Tax (GST) on waste sorting, collection and recycling services to encourage formalisation of the largely informal sector. Other recommendations include reduced or zero duties on reverse vending machines used for plastic collection, as well as incentives for plastic-to-fuel projects and related industries. The alliance said incentives linked to recycling targets and the use of recycled content in packaging could encourage private investment and support a shift towards more sustainable production practices.
