Legislation on food waste

The market and the social economy: the Gadda Act marks its tenth anniversary

Having been in force for two lustri, it remains a benchmark for ETS and businesses. The range of goods covered has expanded to include clothing, electronics and medicines

Olga Mishyna - stock.adobe.com

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The Anti-Waste Act (Law 166/2016) is celebrating its tenth anniversary and remains one of the most progressive pieces of legislation governing the relationship between the market and social economy organisations. It did not merely introduce a set of rules to encourage the donation of goods no longer intended for sale. Rather, it has helped to change the cultural perception of waste, consumption and production, placing the issue of sustainability throughout the entire supply chain, from the business to the end consumer.

The key point is precisely this: goods that do not reach the market – whether because they remain unsold, have been withdrawn from sale, are no longer marketable, or have been excluded from ordinary distribution channels by the company’s own choice – do not necessarily lose their value. On the contrary, they can become tools for meeting the needs of the community, if integrated into an organised supply chain capable of linking companies, third-sector organisations and public bodies. It is in this context that the Gadda Act represented a paradigm shift.

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 Surplus ceases to be a cost to be managed or an asset destined for disposal, and becomes a resource to be recovered and channelled towards social purposes. From this perspective, giving goes beyond mere occasional charity, taking on a new function: the recovery of value and its return to the community in the form of a tangible benefit. This approach forges a strong bond between businesses and the third sector, recognising the latter as a vehicle capable of transforming assets of economic value into effective responses to social needs.

It is no coincidence that, in recent years, increasingly well-structured supply chainsdonation networks. This applies to surplus food, but also to medicines and, more generally, to a wide range of goods that the legislator has progressively brought within the scope of the legislation.

A wider range

Whilst in the initial phase the basket mainly comprised foodstuffs, medicines, personal and household care and hygiene products, supplements, stationery and books, subsequent developments have also extended the range to include furniture, furnishings, toys, building materials, household appliances, personal computers and electronic devices. As highlighted by MP Maria Chiara Gadda, these are ‘unclaimed orphaned products, end-of-season stock, and goods discarded due to minor cosmetic defects, which can find new value within the supply chain social solidarity sector. Poverty, unfortunately, is on the rise, and people’s needs include access to food, as well as school supplies, personal and household care and hygiene products, textiles and toys. This is why projects such as ‘Amazon Dona’ and ‘Fondazione Valore’ can help foster a culture of giving.”

The value of the donation

Ten years after its adoption, the Gadda Act reflects a cultural landscape that has changed profoundly: donations, once a residual and occasional tool, have gradually become a lever capable of influencing organisational models of the most virtuous companies and ETS organisations. Ten years ago, treating donations as equivalent to the destruction of assets for VAT purposes was the only technically viable solution to avoid penalising donors. But it is clear that, formally speaking, destruction and donation remain poles apart: the former erases the value of an asset, whilst the latter regenerates it, returning it to the community in another form. It is the difference between creating new value and destroying that value.

Future prospects

It is precisely for this reason that Law 166/2016 can form part of a broader reflection on the paradigm shift in our tax system. Thanks in part to the recent approval of the National Plan for the Social Economy, new opportunities are emerging to define an autonomous legal system, capable of recognising – even from a strictly tax perspective – the significance of actions that embody the principle of subsidiarity: first and foremost, the act of giving.

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