Germany's CDU/CSU rejects proposed plastic packaging tax

Thorsten Frei, leader of the CDU/CSU parliamentary group, has expressed significant reservations regarding a proposed plastic tax in Germany. Speaking to Welt TV, Frei stated that the current draft is ‘not acceptable’ as it stands, citing an imbalance between costs and benefits for both the public sector and private industry.

The proposed ‘Plastic Packaging Tax Act’ aims to levy 550 euros per tonne of plastic used in packaging starting in July 2027. To encourage sustainability, recycled plastic would be exempt from the tax starting in July 2028. The initiative is designed to incentivize companies to move away from fossil-based plastics and support the struggling plastic recycling industry.

If implemented, the tax is projected to generate approximately 805 million euros for the federal budget in its first year, rising to an estimated 1.5 billion euros annually from 2028 onwards. The draft, which originated from the Federal Ministries of Environment and Finance, is intended to be introduced to the Bundestag by coalition factions.