Environment

EU to introduce plastic waste tax

EU-to-introduce-plastics-waste-tax

Photo: Pixabay

Published

August 7, 2020

Country

Comments

0

Share

Published:

August 7, 2020

Country:

Comments:

0

Share

The European Union is introducing a tax on non-recycled plastic packaging from 1 January 2021. The tax will be paid by member states into the EU’s general budget.

The levy is one of the measures to finance the COVID-19 recovery package of EUR 750 billion.

“As a first step, a new own resource will be introduced and apply as of January 1, 2021, composed of a share of revenues from a national contribution calculated on the weight of non-recycled plastic packaging waste with a call rate of EUR 0.80 per kilogram with a mechanism to avoid excessively regressive impact on national contributions,” the conclusions adopted by the European Council reads.

Besides the plastics tax, the EU plans to introduce a levy on goods imported from countries with emissions that are higher than an EU benchmark or the so-called carbon border tax.

National contributions will be calculated by the European Commission using existing reporting obligations under the Packaging Waste Directive. Under that directive, member states provide data on plastic packaging and recycling.

There are questions on how tax will be calculated, how it will be passed through the supply chain

Mark Victory, Senior Editor at ICIS, said there are questions on how the tax will be calculated, how it will be passed through the supply chain, and whether it would lead to greater regulatory divergence on plastics.

Individual countries are free to adopt different approaches

The charge is not a tax, although commonly referred to as one, because it is payable at state level rather than by individuals or corporations, Victory writes in an insight on the new levy.

The methods used to meet the cost of the charge will be up to individual countries, and the EU Council has not proposed any regulatory stipulations around this. Individual countries are free to adopt different approaches and could seek to recoup the cost of meeting the charge from differing parts of the supply chain, leading to potential regulatory divergence.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

waste-export-eu-ban-truck

Waste is a resource: EU to impose stricter rules, ban plastic waste export

24 January 2023 - The EU is looking to ban the export of all waste intended for disposal, as well as plastic waste shipments to non-OECD countries

form-energy-iron-air-battery-first-factory

Iron-air batteries are 10 times as cheap as lithium, and will be produced from 2024

24 January 2023 - To replace lithium, alternatives are being developed around the world, such as iron-air batteries, whose commercial production will begin in the US in 2024

luzerath-village

Coal wins battle against climate action in tiny German village

20 January 2023 - The eviction of the village residents and the coal mine expansion are a result of the German government's compromise with RWE

dollar-usaid-investment-energy-project

USAID issues call for USD 20 million regional energy investment project

17 January 2023 - USAID's project aims to find investors for commercially and environmentally sustainable energy projects in the region