Are you aware of the new EU revenue source based on non-recycled plastic packaging waste? If you're a manufacturer or importer dealing with plastic packaging in the EU, this recent development could significantly impact your operations and bottom line.
The European Court of Auditors (ECA) has just released a special report examining the introduction and implementation of this new 'plastic tax'. As product compliance professionals, it's crucial for us to understand the implications of this report and how it might affect our industry.
The plastic-based own resource, introduced in January 2021, is designed to diversify EU revenue sources and incentivise the reduction of plastic waste. However, the ECA's findings reveal several challenges that could have far-reaching consequences for businesses like yours.
Key points from the report include:
- Member states were insufficiently prepared for the new tax, leading to data reliability issues.
- The European Commission's support, while helpful, came too late in many cases.
- There are significant discrepancies between forecasted and actual figures, with a €1.1 billion underestimation in the first year alone.
- Concerns exist about whether plastic waste reported as recycled is actually being recycled.
For manufacturers and importers, these findings highlight potential risks and uncertainties:
- Data Reliability: The lack of comparable and reliable data across member states could lead to unfair tax burdens or competitive disadvantages.
- Compliance Challenges: Inconsistent definitions and implementation across the EU may complicate compliance efforts.
- Financial Impact: The significant underestimation in the first year suggests that companies may face unexpected costs or retroactive adjustments.
- Reputational Risks: The uncertainty around actual recycling rates could pose reputational risks for companies claiming high recycling percentages.
To prepare for these challenges, consider the following steps:
- Review your plastic packaging data collection and reporting processes to ensure accuracy and completeness.
- Stay informed about your country's implementation of the new rules and any upcoming changes.
- Explore innovative packaging solutions that reduce non-recycled plastic use.
- Engage with local authorities and industry associations to voice concerns and seek clarification on implementation issues.
The ECA's recommendations to improve data comparability, reliability, and verification of recycling practices are expected to be implemented between 2024 and 2027. This gives us a window to adapt and prepare.
As we navigate these changes together, Alura Group is here to support you. We'll continue to monitor developments and provide timely updates to help you stay compliant and competitive in this evolving regulatory landscape.
Don't let these new regulations catch you off guard. Take action now to assess your plastic packaging practices and prepare for the changes ahead. Need help understanding how these developments specifically impact your business? Contact us today for a personalised consultation.
Source: https://www.eca.europa.eu/Lists/ECADocuments/SR24_16/SR_plastic_own_resource_EN.pdf