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The introduction of a tax on plastic packaging is already on the way across the EU. This tax has been introduced in Italy, Spain, and also the UK. Many other countries are actively considering how they will introduce it and what approach to take. Therefore, it is important to be prepared for the tax, even if it is not yet applicable in your country.
How does it work?
Every EU member state will have to start paying taxes on plastic packaging. It is up to the country to decide who pays it, and so far we have seen the responsibility of this tax being placed on businesses. This is part of the EU’s Green Deal policies which aims to make Europe climate-neutral by 2050. Plastic is one of the major contributors to environmental damage, and this new tax is expected to lead to a decrease in plastic usage. The tax will apply to plastic packaging, such as shrink wrap, plastic tapes, and laminates.
The print industry will be impacted by this tax, as plastic packaging is still widely used. This is expected to increase operating costs. To avoid this increase in costs, businesses should already think about taking action to reduce the use of plastic packaging. In some cases plastic is an important part to ensure the quality of the products shipped. It is important to know that recycled plastic or plastic packaging designed to be reusable will not be taxed.
Even better, businesses can start looking at sustainable packaging alternatives and ways to reduce or even eliminate plastic use. For example, paper packaging and compostable packaging can be great alternatives when appropriate for the product. Not only will these changes lead to less tax, but also to a decrease in co2 emissions and increased brand reputation.
What plastics taxes have been introduced so far?
They have been introduced slightly differently in different countries. The UK was the first country to introduce one in April 2022. The tax applies to businesses who import or manufacture more than 10 tonnes of plastic packaging over a 12-month period. The tax is £200 per tonne and applies to packaging used in the supply chain (e.g. shrink wrap) and packaging used by the consumer (e.g. carrier bags).
In Italy, the manufacturer and the seller are both liable to pay the plastics tax. It is imposed on single use plastics that are used for packaging and the delivery of goods. The cost is €0.45 per kg of plastic, which is equal to €450 per tonne. The government recently postponed the tax until 1 January 2024. This policy has also been adopted by Spain with the same rules and costs.
The Netherlands is actively considering how to introduce it and we can expect an update in the coming months. France and Germany are still considering whether they will introduce it and what approach they would need to take.
Whether a plastics tax has already been introduced in your country or it is expected to come in the future, it is important to think about what steps your business can take to reduce the use of plastic packaging as much as possible.
To read about this in more detail we recommend you check the respective national government websites. For a more general overview you can refer to this article.
