The Supreme Administrative Court (SAC) has suspended the September reduction in product taxes, known as eco-taxes, for electrical and electronic equipment. Until the court makes a final ruling on the dispute, the old, significantly higher rates will continue to apply. According to the Bulgarian Electrical and Electronics Association (BASEL), both consumers and Bulgarian businesses are losing out on the situation.
The product tax is paid by manufacturers and importers of refrigerators, air conditioners, stoves, computers, printers and other electrical and electronic appliances. The funds are intended for the collection, treatment and recycling of end-of-life equipment. The fee is included in the price of the goods and is ultimately paid by consumers.
The issue also affects photovoltaic panels, for which a significant reduction in the rate was also envisaged. A separate and still unresolved problem remains the high fees for industrial batteries for storing electricity, which can significantly increase the value of a completed system.
In early September 2026, the government adopted a reduction in product fees for electrical and electronic equipment by an average of about four times. The change went through a public discussion and was published in the “State Gazette“.
Four waste recovery organizations appealed the new rates to the Supreme Administrative Court. According to the reasons they presented, the lower fees will reduce their revenues and may threaten their financial stability. On October 6, the court suspended the new rates until the proceedings are concluded with a final court decision.
The Council of Ministers filed a private appeal against the suspension, but it was left without action due to an irregularity in the signing. A seven-day deadline was given to remedy the problem. If this is done in time, a five-member panel of the Supreme Administrative Court will finally decide whether the temporary suspension should remain in force.
The court can cancel the suspension and the lower rates can begin to apply, without waiting for the conclusion of the main case. However, if the suspension is confirmed, the old higher fees will remain at least until the first open court hearing, scheduled for February 10, 2027. This does not mean that the dispute will end then. The decision of the three-member panel can be appealed to a five-member panel, which is why the implementation of the lower rates may be delayed further.
“We are disappointed, worried and very surprised by the situation that has arisen. The new rates have gone through a public discussion and all the procedures provided for by law. It is difficult for me to accept that the Council of Ministers, with all the expertise and legal resources at its disposal, has adopted an unlawful or unjustified change. It is even more worrying that the appeal of the judicial stay has been left without movement due to an irregularity in the signing. As a result, Bulgarian business and consumers continue to pay significantly higher fees“, said the Chairman of BASEL, Dr. Eng. Dimitar Beleliev.
As an example of the lack of economic justification, BASEL points to the product fees for industrial batteries for storing electricity. In Bulgaria, the rate reaches approximately 2.81 euros per kilogram, while the comparable rate in Romania is around 0.20 euros per kilogram. Thus, the fee in our country is approximately 14 times higher and places Bulgarian investments in storage systems at a significantly disadvantageous position.
The association recalls that product fees should reflect the real costs of collecting, treating and recycling waste, and not become a hidden burden for businesses and consumers. BASEL insists on transparent and economically justified rules, under which each producer or importer pays according to the waste actually generated and the real costs of its recovery.
The association will seek talks with the Council of Ministers, the Ministry of Environment and Water and other industry organizations in order to protect the adopted lower rates and to find a fair and market-acceptable solution for industrial batteries as well.
BASEL is a national representative organization of the “Electrical Engineering and Electronics“ industry, founded in 1994. It has 130 Bulgarian and foreign companies, universities and business organizations as members. Among the members are manufacturers of electrical and electronic products, companies for the repair and construction of electrical installations, suppliers of components and companies with engineering, consulting and development activities. Their total annual turnover is about 2 billion euros.