The Bavarian state government has announced that it will present a law prohibiting cities and municipalities from introducing their own packaging taxes. This is in response to municipal initiatives such as the one in Augsburg. Environmental organisations have sharply criticised the plan.
On 13 May 2025, the Bavarian Council of Ministers decided to introduce a ban on municipal packaging taxes. Interior Minister Joachim Herrmann (CSU) announced that he would swiftly submit a corresponding bill to amend the Bavarian Municipal Tax Act. The aim is to create legal clarity and ensure standardised competitive conditions for companies in Bavaria.
„We don't need individual cities to go it alone when it comes to taxes,“ said Herrmann. The planned regulation should prevent catering and retail businesses in different municipalities from being confronted with different tax burdens. Businesses with to-go offers would be particularly affected, for example by taxes on disposable plastic packaging.
Background: Packaging tax planned in Augsburg
The project was prompted by the city of Augsburg, which - like Tübingen - wanted to introduce a municipal packaging tax for single-use packaging. Tübingen had presented such a model in 2022, which was confirmed in principle by the Federal Administrative Court after a lengthy legal dispute. Bavaria now wants to prevent such local regulations before they become common practice.
The state government believes that state and federal regulations are responsible. A patchwork of tax regulations is neither legally sensible nor economically viable, according to the Ministry of the Interior.
According to Herrmann, such a packaging tax would also contradict other tax breaks for the already heavily burdened catering industry, which would have to pass such a tax on to the public: „The coalition agreement of the new German government expressly states that VAT on food in the catering sector is to be permanently reduced from 1 January 2026. A municipal packaging tax in the ‚to go‘ sector would clearly undermine the goal of providing fundamental and permanent relief for the catering industry.“
Environmental aid criticises state government
Environmental organisation Deutsche Umwelthilfe (DUH) reacted indignantly to the state government's announcement. It criticised the fact that this would prevent effective local measures to avoid waste. Cities and municipalities that want to take action against the flood of disposable packaging on their own responsibility are being deliberately deprived of their room for manoeuvre. The DUH suspects political consideration for the single-use industry and described the planned ban as a step backwards in terms of environmental policy.
Approval from business and associations
From the point of view of many companies, the state government's plan means planning security. Industry associations such as the Bavarian Trade Association had previously spoken out against special municipal taxes. They argue that different regulations in individual cities would lead to more bureaucracy and competitive disadvantages - especially for smaller businesses.
It remains to be seen when the bill will actually be introduced in the state parliament. The Ministry of the Interior is aiming for swift implementation.
Source: Bavarian State Ministry of the Interior, for Sport and Integration, press release dated 13 May 2025
To the official press release
