Germany plans €550 per tonne plastic packaging tax from July 2027 to raise €1.5 billion

Draft legislation and tax structure

Germany's governing coalition parliamentary groups, CDU/CSU and the SPD, have prepared draft legislation to impose a national excise tax on plastic packaging starting 1 July 2027. Under the draft Plastic Packaging Tax Act, companies will pay €550 for every tonne of plastic contained in packaging manufactured in or imported into Germany. The tax applies to packaging, films, and composite materials where plastic content exceeds 5% of total weight, covering transport materials, containers, lids, caps, and capsules. Packaging made from recycled plastic can be exempted from the tax upon application. The measure targets commercial entities, while private individuals transferring covered goods remain exempt.

Fiscal targets and EU levy background

The legislation aims to curb plastic waste while generating revenue for federal budget consolidation. In 2023, Germany generated roughly 3 million tonnes of plastic packaging waste, an amount the coalition expects to tax before annual volumes decline over time. Federal projections anticipate additional tax revenue of €805 million in 2027, rising to €1.485 billion in 2028 and staying close to €1.5 billion annually thereafter. Since 2021, European Union member states have paid an annual contribution of 80 cents per kilogram of non-recycled plastic packaging to the EU budget, which costs Germany approximately €1.4 billion each year. The federal government previously financed this obligation entirely from the general budget, without recovering costs from manufacturers. Implementing the domestic tax will require €284 million in federal spending through 2029 for IT systems and customs administration, followed by €104 million in annual administrative costs from 2029 onward.

Industry opposition and procedural disputes

Business associations have expressed strong resistance to the legislative proposal and its procedural path. In a joint letter dated 2 October 2026 sent to Federal Chancellery Minister Nina Warken, industry groups including the food industry federation, the German Retail Association (HDE), and the plastic packaging industry objected to passing the tax through fast-track parliamentary maneuvers. The groups stated that the Finance Ministry planned to submit wording directly to the Bundestag Budget Committee as an amendment to the 2027 Budget Financing Act, bypassing standard ministerial coordination and formal cabinet approval. According to government impact estimates in the draft, the tax will impose a one-off corporate bureaucracy cost of €8.8 million and €44.1 million in recurring annual compliance expenses driven by information and documentation duties. HDE Chief Executive Stefan Genth addressed a separate complaint to the Ministry for Economic Affairs, rejecting the levy on the grounds of earlier government commitments.

The introduction of a plastic levy would be a clear breach of the coalition agreement here.

Environmental reactions and broader fiscal measures

Environmental organization Deutsche Umwelthilfe welcomed the principle of taxing plastic packaging but called for specific constraints and expansions. A spokesperson for the group stated that the tax must apply strictly to single-use items rather than reusable packaging systems. The organization also urged legislators to extend the consumption levy to paper, cardboard, and metals such as aluminum and tinplate to prevent companies from switching to alternative disposable materials. The plastic tax forms part of a broader fiscal package negotiated by Union and SPD leaders to close multi-billion-euro budget gaps, which also includes increases to alcohol and tobacco taxes alongside a planned sugar tax.