Since 2021, all EU member states have been subject to a levy on non-recycled plastic packaging waste. Germany currently covers the so-called “plastic tax” through its federal budget. As part of the negotiations for the 2027 budget, however, the government plans to shift the EU levy to businesses, with the aim of creating stronger incentives for sustainable and recyclable packaging solutions.

What Exactly Is the Plastic Tax?  

The plastic tax is an EU levy that member states have been required to pay since 2021. It is based on the amount of non-recycled plastic packaging waste generated in each country. The underlying principle is simple: countries with lower recycling rates pay higher contributions.

Packaging materials are only counted as recycled if they are processed into new products or materials. If packaging waste is sent to another EU member state for recycling, it can only be credited as recycled in the country where the waste was originally collected.

While the EU has established the levy at the European level, the specific implementation and design of the plastic tax are left to the individual member states. 

How Is the Plastic Tax Calculated?

The exact amount of the levy is calculated as the difference between the total weight of plastic packaging waste generated in a given year and the amount that is recycled during the same period.

The contribution is set at €0.80 per kilogram of non-recycled plastic packaging waste. Of this amount, €0.20 remains with the member state, while €0.60 is paid to the European Union.

According to Plastics Europe, Germany has been paying approximately €1.4 billion per year to the EU since 2021, based on around 1.7 million tonnes of non-recycled plastic packaging waste annually.

What Is the Revenue from the Plastic Tax Used For?

The revenue generated from the plastic levy is paid into the EU budget. It forms part of the EU’s own resources and is intended, among other things, to help repay the Next Generation EU (NGEU) recovery program. The funds are also earmarked for environmental and climate initiatives, including measures that support the transition to a circular economy.

Through its levy on non-recycled plastic packaging waste, the EU aims to achieve several objectives:

  • Reduce plastic waste

  • Promote the circular economy

  • Finance environmental and climate measures

  • Increase environmental awareness

Germany Plans to Pass EU Plastic Tax Costs on to Businesses from 2027

In Germany, the plastic tax has not yet been passed on to businesses. Instead, the levy has been paid to the European Union from the federal budget. That may soon change: as part of the negotiations over the 2027 federal budget, policymakers habe discussed shifting the cost of the levy to businesses starting in 2027.

The plastic tax is set to be passed on to companies that place packaging on the German market for the first time. In doing so, Germany is moving toward an extended producer responsibility model, similar to systems already in place in countries such as the United Kingdom. While affected businesses are not required to pass the costs on to consumers, it is likely that higher compliance costs will be reflected in product prices.

The EU plastic tax is intended to reward manufacturers that use recycled materials or design packaging that can be easily recycled. This helps keep plastics in circulation for longer and supports their reuse within a circular economy. At the same time, the levy creates an incentive to reduce unnecessary packaging and make reusable packaging solutions more attractive.

everwave: Removing Plastic Waste from the Environment

At everwave, we work every day to create cleaner, plastic-free rivers and waterways around the world. Through waste collection boats, river barriers, and manual cleanup operations, we remove packaging waste and other debris from aquatic environments. This work is essential in the fight against plastic pollution. However, simply removing waste from the environment is not enough to solve the problem in the long term.

That is why it is crucial to hold companies that place plastic products and packaging on the market accountable. Only by reducing plastic waste, increasing the use of recyclable packaging, and strengthening the circular economy can plastic pollution be addressed at its source and significantly reduced over time.