Plastic tax: Federal government plans to levy a tax on plastic packaging from 2027

Plastic packaging could soon become significantly more expensive for companies: The coalition factions made up of the CDU/CSU and SPD in the Bundestag are planning a new tax on plastic. From July 2027, 550 euros will be charged for every ton of plastic in packaging. This emerges from a draft for a “Plastic Packaging Tax Act”, which is available to the German Press Agency and which is based on a decision by the federal government in July. The “Welt” had previously reported.

“The introduction of an excise tax on plastic packaging is intended to create incentives to reduce the consumption of plastic packaging,” says the draft law. According to this, around three million tons of plastic packaging waste was generated in 2023.

The law is also intended to generate additional revenue for the federal budget. Additional tax revenue of 805 million euros is expected as early as 2027. From 2028 onwards, the additional income is forecast to be almost 1.5 billion euros annually.

What is covered by the plastic tax?

According to the draft, plastic packaging and films as well as composite packaging should be taxable if their plastic content is more than five percent. This includes, among other things, films, transport and packaging materials, closures, lids and plastic capsules. The tax should be incurred when the corresponding packaging is manufactured, shipped or imported.

The coalition expects that around three million tonnes of plastic packaging could initially be taxed per year. This amount is likely to decrease over time, according to the bill's explanatory note. The tax can be waived for packaging made from recycled plastic upon application. Private individuals remain tax-free when passing on the affected products.

Environmental aid calls for excise tax to be expanded

German Environmental Aid welcomes the approach. “However, it must be ensured that the plastic packaging tax remains limited to disposable packaging and is never levied on reusable packaging,” said a spokeswoman for the organization when asked. In order to prevent a shift to other packaging materials, the excise tax should be extended to paper, cardboard and cardboard as well as to metals such as aluminum and tinplate, according to Umwelthilfe.

Criticism comes from the plastics association Plastics Europe Germany. The draft law leaves important questions about the implementation of the tax unanswered. It is not a “mature law, but a national tax experiment,” said the managing director of Plastics Europe Germany, Christine Bunte.