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Environmental protection loses to kronavirus – proceeds from plastic tax will power the EU Repair Fund

The European Council approved the imposition of a tax on non-recyclable plastics.

The European Council approved the imposition of a tax on non-recyclable plastics.

It is intended to fund the Recovery Fund to combat the crisis.

The European Council approved the imposition of a tax on non-recyclable plastics. It is intended to fund the Recovery Fund to combat the crisis. Unfortunately, not the environment.

Thanks to the latest agreement on the long-term budget of the European Union (Multiannual Financial Framework, MFF) and the Recovery Fund to bridge the effects of the COVID pandemic The European Council approved the introduction of the so-called plastic tax applicable to 1 January 2021 The tax will be 0.8 EUR per kg of material that has not been recycled.

I want it to come in ok. 6,000,000,000 EUR Every year, with the most joint money from Germany, Italy, France, Spain and Poland – our country will pay approx. 500,000,000 EUR A year.

Climate crisis on second plan

Ecological experts point out that the tax is intended to fund the EU's money and in no way will it support green actions. According to the European Commission, the contribution to the EU budget is intended to encourage Member States to increase the recycling of plastic waste. In fact, it will be the opposite.

  • Further fiscal measures are not the most effective tool for driving innovation and investment that is needed to achieve the intended policy objectives of Green Deal," comments the European Association of Plastic Processors (EUPC).
  • As the revenue from the EU plastic tax is not intended to invest in waste infrastructure and recycling, this will not increase the recycling of plastic waste in Europe," explains Alexandre Dangis, Managing Director of EuPC. – Instead, just packaging materials will change, which will have an even more harmful impact on the environment. To really increase recycling rates across Europe and to protect the environment, it would be more efficient to tax the landfill of plastic packaging waste.

Fixing the budget - Robin Hood's tax idea returns

The revenue from the so-called border coal levy and the digital levy are also intended to feed the EU budget to combat the crisis. The European Commission will propose solutions to this end In the first half-year 2021. The plans also included a financial transaction tax ((FTT), also called "Tobin tax" or "Robin Hood tax".

  • The European Commission will propose changes to emissions trade, possibly extending it to aviation and shipping. During the planning of the next multiannual financial framework, the Union will work on the introduction of so-called other own resources, which may include, for example, a financial transaction tax. Revenue from new taxes introduced after 2021 will be allocated to early repayment of loans entered into in the financial markets under the recovery plan, as stated in the EC Communication.

Author: Katarzyna Kołbuś

Editor leading RB Magazine. From Over 10 years related to industry press, including the Financial Gazette and portal ipip.com.pl, which focuses on finance, taxation, law, politics and the economy

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