The German federal government plans to introduce a new tax on plastic packaging starting July 1, 2027. This initiative is detailed in a draft plastic packaging tax law, as reported by the newspaper “Die Welt”.
According to the Federal Ministry of Finance, this consumption tax is expected to generate additional revenue for the federal budget, forecasting €670 million in the coming year and €1.505 billion in the first full year of 2028. The rationale provided for the tax is two-fold: generating supplementary funding for the federal budget and simultaneously helping reduce the consumption of plastic packaging.
The draft specifies that the tax generally applies to “plastic packaging, plastic foils, and composite packaging, provided the plastic content exceeds 5 percent.” The tax rate is based on the weight of the plastic contained in the packaging, with the prototype stating the cost will be €550.00 for every 1,000 kilograms of plastic.
By implementing this price signal through taxation, the government aims to incentivize a reduction in the use of plastic packaging. Furthermore, the government intends to support recyclates by exempting the tax for plastic packaging made from recycled materials. The draft law states that packaging produced from recycled plastic can apply for this tax relief.
However, various economic associations and the customs agency have called on the Minister of the Chancellery, Nina Warken (CDU), to halt the current legislative procedure. In a letter reported by “Die Welt”, they argue that a consumer tax of this magnitude should not be concluded quickly as part of the budget process. They request that the accelerated procedure be stopped and, should the government decide to proceed, that a separate, transparent, and open legislative process be established.
Eight organizations signed this letter, including the German Trade Association (HDE), the Federal Association of German Waste, Water and Circular Economy (BDE), and the German Customs and Finance Union (BDZ). Their objection extends beyond the content of the tax itself; they also object to the fact that this bill, much like the draft for the planned sugar tax, is to be delivered as a “formulation aid” directly to the CDU/CSU and SPD parliamentary factions to speed up the legislative process.
