Packaging taxes in Germany are facing criticism because, despite significant bureaucratic effort, they offer only minor ecological benefits. A recent study by the GVM Gesellschaft für Verpackungsmarktforschung and the ifeu – Institute for Energy and Environmental Research Heidelberg shows that these taxes cover a mere 0.7 per cent of total packaging consumption. The contribution to reducing waste generation and greenhouse gas emissions remains minimal.
The study found that even with a hypothetical extension of the tax to the entire federal territory, the volume of packaging would be reduced by only 0.04 percent and greenhouse gas emissions by 0.0013 percent. These figures illustrate the limited ecological benefit of the packaging tax. Kristina Harrer-Kouliev from the Federal Association of System Catering criticises the fact that the tax misses its target of effectively reducing packaging waste and instead creates new burdens for the hospitality industry, retail and consumers.
High economic burdens
Besides the low environmental impact, the packaging tax causes significant economic burdens. The study shows that the administrative costs for the introduction, collection and monitoring of the tax amount to around 10 to 15 per cent of the tax revenue. Businesses have to fulfil additional documentation obligations, adapt checkout systems and train employees. These measures lead to an increase in the tax burden on affected packaging from currently €0.1 billion to €4.1 billion. Ultimately, these costs are mostly passed on to consumers, which particularly hits lower-income households. A packaging tax is therefore redundant, GVM Managing Director Kurt Schüler summarises upon the presentation of the study.
Insufficient steering effect
The packaging tax leads to changes in behaviour, but its ecological steering effect remains limited. Consumers often switch to pre-packaged convenience products or use non-taxable packaging. In addition, there is evidence of shifting to municipalities without a packaging tax, which leads to a relocation of packaging volume. Even when switching to reusable packaging, an ecological advantage is not automatically guaranteed, as these are only beneficial if they are used frequently and returned reliably.
Calls for alternatives
In light of the study results, the commissioners of the study are speaking out against municipal packaging taxes. „The packaging tax creates massive bureaucracy. In Tübingen alone, it took a year just to register all the businesses affected by the tax. Yet the packaging tax is not without alternatives,“ said Sebastian Bolay of the Association of German Chambers of Commerce and Industry at a joint press conference. He advocates strengthening existing circular economy systems and innovative solutions for material saving. The expansion of functioning recycling systems and targeted measures to support entrepreneurial commitment could be significantly more effective.
The study was prepared by the GVM Gesellschaft für Verpackungsmarktforschung in cooperation with ifeu – Institut für Energie- und Umweltforschung Heidelberg. The study was commissioned by the German Chamber of Commerce and Industry (DIHK), the Alliance for Packaging and the Environment (AVU), the German Association for System Catering (BdS), the Paper Industry, the Folding Box Industry Association (FFI), the German Retail Association (HDE), the Industrial Association for Paper and Plastic Packaging (IPV) and the Working Group for Service Packaging (PRO-S-PACK). The study is based on extensive market data, expert interviews and on-site research in municipalities with an existing packaging tax. The full long version of the study can be obtained from the GVM can be requested.
Source: FFI Association of the Folding Carton Industry
