Following in the footsteps of Spain and the UK, Germany is introducing its own "plastic tax". The German Primary Plastics Fund Act (act) was established in May 2023, thus putting the Article 8:1-7 Primary Plastics Directive into legal effect and establishing the legal basis for the implementation of the Primary Plastics Fund by the German Federal Environment Agency (UBA). As a result, the Bundestag (German Federal Parliament) recently approved the adoption of the Primary Plastics Fund Regulation.
The new legislation will determine the tax rate of the fund as well as the payment system. The producers of the primary plastic products included in the fund will pay taxes to the fund, which will help the public sector to deal with environmental waste.UBA will be responsible for the management of the fund, as well as for municipal distribution.
The UBA is currently building the required database. The plastic tax will be introduced on January 1, 2024, and then in 2025 it will start receiving payments. The registration of producers and beneficiaries will also start on January 1, 2024.
Businesses are required to report on the range of primary plastics that their business has been involved with. This is accomplished by submitting a statement describing the use or sale of plastic products once a year before, which needs to be divided into plastic varieties and masses in kilograms. The deadline for reporting is May 15, 2025. Exemptions include those producers who distribute less than 100 kilograms a year, or those who began a bottle deposit-only business in the previous year. Businesses that deliberately or negligently register will be fined up to 100,000 euros.
The government claims that cigarette butts, takeaway (to-go) cups and one-off food containers are so prevalent on roadsides, in parks and forests that they are causing a pollution crisis. The cost of cleaning them up is now being borne by the public. This phenomenon will be reversed from 2024. All businesses based on disposable plastic products will contribute to the collection and cleaning costs for municipalities.
The specific tax rates are listed below:
Cigarette butts: Euro 8.972 per kilo
Takeaway drink cups: €1.236 per kilogram
Takeaway containers: €0.177 per kilo
Bags and foil packs: €0.876 per kilo
Bottles without deposit: €0.181 per kg
Bottles with deposit: €0.001 per kg
Lightweight plastic bags: €3.801 per kilo
Wet wipes: €0.061 per kilo
Balloons: €4.340 per kilo
Based on a point system that is calculated and administered, UBA pays the fund to the municipality on a pro rata basis. The federal government will approve this point system every three years
