Taxation of packaging waste in Germany: latest updates

In recent years, several plastic-related levies have been introduced in Germany. It is not always easy to distinguish between the individual levies in terms of their application. Basically, in the area of packaging-related levies, a distinction must be made between:

• the new plastic tax that will probably be introduced in 2026,
• Germany's plastic levy paid to the European Union,
• the levy under the Single-Use Plastics Fund Act,
• the provisions of the Packaging Act and
• the regulations of the Disposable Plastics Prohibition Ordinance.

 

The new “plastic tax”

Since 1 January 2021, EU member states have had to pay a levy to the European Union, which is based on the amount of non-recycled plastic packaging waste generated in the individual EU member state. Germany currently pays this levy to the EU from the federal budget. The introduction of a national “plastic tax” in Germany has been planned for some time. This plastic tax is intended to pass on the costs of the EU levy to the manufacturers and importers of plastic. The introduction of this tax has already been postponed several times. Currently, 1 January 2026 is being considered as the introduction date. Accordingly, the exact details of this tax are not yet known. Consequently, it is also not yet foreseeable whether there will be a double burden from existing regulations, such as the Single-Use Plastics Fund Act or the Packaging Act, and the new “plastic tax”.

 

The Packaging Act

The Packaging Act is another regulation in the area of levies relating to plastic packaging. The aim of the Packaging Act is to implement the product responsibility of packaging manufacturers under waste legislation. The Packaging Act stipulates that manufacturers of packaging filled with goods must register in the LUCID packaging register and participate in a dual system for taking back system-participating packaging. This is intended to help reduce the impact of packaging waste on the environment.

The Packaging Act applies in principle to all types of packaging, including single-use plastics. Although the Packaging Act is generally aimed at packaging waste generated by private end consumers, the main focus of the Single-Use Plastics Fund Act is on certain packaging generated in public spaces. However, a double burden on a manufacturer with regard to the same product under both the Packaging Act and the Single-Use Plastics Fund Act cannot be practically ruled out. A possible double burden is not ruled out by law either.

 

The Single-Use Plastics Prohibition Ordinance and the Single-Use Plastics Labelling Ordinance

Since coming into force on 3 July 2021, the Single-Use Plastics Prohibition Ordinance prohibits the placing on the market of certain single-use plastic products. Single-use plastic products are basically products made entirely or partially of plastic that have not been designed, developed and placed on the market to go through several product cycles during their service life, i.e. that are generally only intended to be used once. The single-use plastics products that are now banned include:

• Cotton buds,
• Cutlery,
• Plates,
• Drinking straws,
• Stirring rods,
• Balloon sticks,
• Certain food containers and
• Beverage containers and beverage cups

Only remaining stocks of the listed products may be sold.

The Single-Use Plastics Labelling Ordinance, on the other hand, stipulates that certain single-use plastic products may only be placed on the market if they are labelled as such. This applies in particular to hygiene products, tobacco products and drinks cups. The labelling is intended to inform consumers that these products contain plastic, which disposal route should be avoided and what consequences improper disposal has for the environment.

 

The Single-Use Plastics Fund Act

The Single-Use Plastics Fund Act came into force on 1 January 2024. It obliges manufacturers of single-use plastic products to pay into a fund, the resources of which are in turn used to finance cleaning and awareness-raising measures. More detailed information on the latest news about the Single-Use Plastic Fund Act can be found in our article on the latest developments in the Single-Use Plastic Fund Act.

The Single-Use Plastics Fund Act obliges manufacturers to report single-use plastic products made available or sold on the market for the first time. The prerequisite for this is that the manufacturers as well as the waste disposal companies that are to benefit from future payments from the fund register on the DIVID platform provided by the Federal Environment Agency. Manufacturers who started their activities before 1 January 2024 must register by 31 December 2024. For all other manufacturers, this obligation applies immediately from the start of operations. The first annual report regarding plastic products made available on the German market for 2024 under the Single-Use Plastics Fund Act must be submitted by 15 May 2025. Manufacturers must therefore take action now and collect data for this annual report.

The single-use plastic products subject to mandatory reporting are listed in Annex 1 of the Single-Use Plastics Fund Act and include in particular:

• To-Go food containers,
• Beverage containers,
• Lightweight plastic carrier bags,
• Wet wipes,
• Balloons and
• Tobacco products.

However, products made from natural polymers that have not been chemically modified are excluded from the reporting obligation under the Single-Use Plastics Fund Act. The polymerisation process of these natural polymers must have taken place in nature. Polymers produced in an industrial environment, on the other hand, do not fall under the exemption from the obligation to notify. To determine if the product in question consists of natural polymers the extraction process in which the material is obtained is not taken into account. Therefore, cellulose and lignin extracted from wood or maize starch obtained by wet grinding, for example, fall under natural polymers.

Polymer-based rubber articles and bio-based and biodegradable plastics on the other hand are covered by the term plastic, even if they are obtained from biomass and decompose over time. As a consequence, polymer-based rubber articles and bio-based and biodegradable plastics are encompassed from the reporting obligation under the Single-Use Plastics Fund Act.

 

Key Takeaways

• Single-Use Plastics Fund Act
  
  • Urgent examination of manufacturer status in the context of the Single-Use Plastics Fund Act
  • Registration as a manufacturer within the meaning of the Single-Use Plastics Fund Act by 31 December 2024
  • Products made of natural polymers that have not been chemically modified are exempt from reporting requirement under Single-Use Plastics Fund Act
  • Rubber articles based on polymers, as well as bio-based and biodegradable plastics, covered by reporting requirement under Single-Use Plastics Fund Act
• Plan for the introduction of a “plastic tax”
• Possible double burden due to the EWKFondsG and the Packaging Act

If you have any further questions in this context, the tax law team led by Dr Björn Enders, a registered tax consultant under the German Packaging Act, will be happy to assist you. We take care of all audits and confirmations in connection with the reporting of single-use plastic products and will be happy to advise you on the establishment of appropriate processes and the fulfilment of all compliance obligations newly introduced by the Single-Use Plastic Fund Act.