The European Union’s plastic resources: a new plastic tax?

As part of its post-COVID recovery plan the European Union has created a new contribution for member states, based on the amount of packaging plastics not recycled, to encourage recycling. This contribution is payable by states and can be deferred as a tax, which shows how important it is that agricultural plastics are not considered as packaging. A plastic tax on agriculture would penalise agricultural production, even though members states have the option of not passing on the tax.

On the other hand, the resource needs of countries and the European Union are such that the incentive to tax is strong, even with a low return for agricultural plastics due to the small size of the market.

This situation underlines the relevance of ongoing work, notably on eco-modulation of eco-taxes according to recycling and incorporation of recycled content.