(de-news.net) – Due to objections from at least 24 conservative members of the Bundestag, Germany has delayed a Cabinet decision on its proposed tax on plastic packaging. For the sake of promoting the use of recycled plastic, a projected levy of 550 euros per metric ton starting in July 2027 was intended to produce up to 1.5 billion euros per year starting in 2028. However, the governing coalition only has a 12-seat parliamentary majority, and doubts have been raised regarding the idea due to worries about company compliance costs, customs staffing requirements, and regulatory conflicts.

Germany’s proposed plastic packaging tax has encountered renewed resistance within the governing coalition, delaying a cabinet decision that had originally been scheduled for this week. The postponement follows an agreement on the design of a separate sugar tax, leaving the plastic levy subject to further discussion. Thorsten Frei, chairman of the CDU/CSU parliamentary group, has backed the conservative lawmakers who formally opposed the current draft, arguing that its projected costs and administrative demands are not adequately justified by its expected benefits.

The objections of those against the proposal center on the financial burden that the measure could impose on businesses, the expansion of bureaucratic requirements and more specifically, the resources needed to administer the tax. With the governing coalition holding a parliamentary majority of just 12 seats, the opposition of at least 24 lawmakers presents a significant challenge to the proposal’s passage.

Proposed levy would take effect in July 2027

Under the draft legislation, a consumption tax of 550 euros per metric ton would apply to plastic packaging beginning July 1, 2027. The proposed levy would cover conventional plastic packaging and films, as well as composite packaging made from materials such as paper, cardboard or metal if the products contained at least 5 percent plastic. Both single-use and reusable packaging would fall within its scope.

Manufacturers and commercial purchasers importing packaging from other EU countries would be required to report their quantities to customs each month. These reporting obligations would form part of the administrative framework for collecting the tax and monitoring the quantities of plastic packaging entering the system.

The proposal also includes an exemption for recycled plastic beginning in July 2028. By differentiating between recycled material and plastic derived directly from fossil fuels, the government aims to encourage companies to reduce their reliance on conventional plastics and transition toward more sustainable alternatives. The measure is also intended to support Germany’s plastics recycling industry, which has been experiencing a severe crisis.

Administrative costs and staffing requirements draw criticism

Despite the proposal’s environmental objectives, critics have questioned whether its expected benefits would justify the financial and administrative demands of implementation. According to the draft, companies would face estimated annual compliance costs of approximately 44 million euros, while the Federal Government’s administrative expenses were projected to exceed 100 million euros annually beginning in 2028.

Staffing requirements for customs enforcement have emerged as another point of disagreement. The legislation provides for 788 positions, but the customs union estimates that approximately 2,000 additional officers would be needed. Industry associations have also warned that the financial burden could be substantially greater than the figures included in the government’s calculations, raising further questions about the resources required to implement the system.

Criticism extends beyond the immediate costs of administering the levy. Opponents have identified potential conflicts with existing packaging regulations, under which fees charged by dual waste-management systems are already linked to environmental criteria. They argue that the proposed tax could complicate the relationship between the existing framework and the new fiscal requirements.

Municipal finances present another potential concern. Cities such as Tübingen and Potsdam already impose their own packaging taxes, and critics have raised the possibility that municipalities could discontinue these local measures and subsequently seek compensation from the Federal Government. Such a development could create additional financial obligations beyond those anticipated in the original proposal.

Revenue would offset Germany’s contribution to the EU plastic levy

The Federal Government initially projected additional revenue of 670 million euros in the first year, with annual receipts expected to rise to approximately 1.5 billion euros from 2028. The proceeds would help finance Germany’s contribution to the European Union’s plastic levy, which currently costs the federal budget approximately 1.4 billion euros annually.

Under the existing arrangement, the cost of Germany’s EU contribution is covered by the federal budget. The proposed legislation would shift that financial responsibility toward manufacturers and other liable businesses, while using the tax structure to encourage greater use of recycled plastic. The Government’s approach therefore combines a revenue objective with an environmental incentive, although opponents have questioned the balance between those aims and the costs of implementation.

The Cabinet’s decision to postpone consideration leaves the proposal unresolved as the government weighs the objections raised within its own parliamentary ranks. Because the governing coalition has a majority of only 12 seats, the opposition of at least 24 conservative lawmakers complicates the legislation’s prospects for securing sufficient support in the Bundestag. Further discussions will be needed before the government can determine whether the current draft can proceed or requires changes to address the concerns over costs, administration and regulatory compatibility.