Germany Scraps Planned Plastic Tax For 2027

Germany's planned plastic tax has been put on hold. The federal government had originally proposed introducing a levy of €550 per metric ton of plastic used in packaging, starting in July 2027. The measure was intended to generate additional revenue for the federal budget while encouraging a reduction in plastic packaging waste. However, following opposition from industry and disagreements within the governing coalition, the Christian Democratic Union/Christian Social Union (CDU/CSU) and Social Democratic Party (SPD) agreed in mid-November not to introduce the tax in 2027.

EU Levy and Projected Revenue

The proposal stems from an EU levy on non-recycled plastic packaging waste that has been in place since 2021. Germany currently pays €0.80 per kilogram of non-recycled plastic packaging waste, with the contributions financed through the federal budget. The proposed national plastic tax was intended to pass part of these costs on to businesses.

The federal government had expected the tax to generate several hundred million euros in revenue in 2027, followed by approximately €1.5 billion annually from 2028.

Plastics Industry Welcomes Decision

The Wir sind Kunststoff (We Are Plastics) initiative, backed by the German Plastics Processing Industry Association (GKV), PlasticsEurope Germany and the VDMA Plastics and Rubber Machinery Association, welcomed the decision to shelve the national plastic tax.

"The proposal not only discriminated against plastic as a packaging material but also put German companies at a disadvantage compared with their foreign competitors. Companies packaging products in Germany would have had to pay, while those packaging products abroad and supplying them to Germany would not. That would have amounted to sabotage of Germany as an industrial location," said Dr. Christine Bunte, Managing Director of PlasticsEurope Germany.

"The administrative burden associated with the proposal would also have been entirely disproportionate. At least 800 additional positions would have been needed in customs and public administration. Even then, the level of enforcement would have remained very low. German companies would also have faced substantial additional bureaucracy costs. That runs counter to the goal of reducing red tape," said Thorsten Kühmann, Managing Director of the VDMA Plastics and Rubber Machinery Association.

Werner & Mertz Calls for Eco-Modulation

Cleaning products manufacturer Werner & Mertz also opposes the proposed design of the plastic tax. According to the company, imposing a blanket levy on plastic packaging would not help establish a high-quality circular economy for plastics.

"We reject the provisions of the proposed legislation as communicated, because simply imposing a financial burden on plastic packaging does not contribute positively to a high-quality circular economy for plastics," said Timothy Glaz, Head of Corporate Affairs at Werner & Mertz.

Instead of a blanket tax, Werner & Mertz is calling for stronger incentives to encourage the use of recycled plastics, particularly in packaging for contact-sensitive products.

"We are calling for eco-modulation to promote the circular economy for plastic packaging. The priority should be to provide appropriate incentives for the use of recycled plastics in packaging, including for contact-sensitive products," Glaz explained.

According to Werner & Mertz, post-consumer recycled materials should preferably be sourced from EU member states to avoid the complex documentation requirements associated with imports. The company also argues that promoting high-quality plastic recycling loops could reduce dependence on imported fossil-based raw materials.

Environmental Action Germany Strongly Criticizes Decision

While plastics industry associations and Werner & Mertz question the proposed tax's effectiveness in encouraging more sustainable packaging practices, Environmental Action Germany (DUH) argues that companies should bear greater financial responsibility.

In a statement issued on November 12, the environmental organization strongly criticized the decision to abandon the tax.

"Anyone who fails to regulate the consumption and recycling of single-use plastics through pricing undermines the circular economy and unnecessarily shifts the environmental costs onto the general public," said Barbara Metz, Federal Managing Director of DUH.

"We call on the federal government to maintain its plans to pass the plastic tax on to the companies responsible and to introduce incentives to promote reusable systems that prevent waste," Metz added.

Author: Alexander Stark, Freelance Journalist