German Government releases draft legislation for a Single-Use Plastics levy in Germany

Based on the European Union (EU) Single-Use Plastics Directive regulations, the German Government has now approved a governmental draft for legislation to implement a Single-Use Plastics levy in Germany (EWKFondG). The legislation is in draft status with next legislative steps being consultation with the German Federal Parliament and the German Federal Council. It is expected that the law will pass in the first quarter of 2023.

The measure aims to reduce waste and to stimulate better use of plastic as a resource and is also aligned to broader circular economy ambitions. As a result, producers of single-use plastic items shall be responsible for waste management and recycling, cleaning of public areas as well as education and consumer awareness.

New obligations under the regime would impact a range of business transactions including: local (German) companies or manufacturers placing single-use items in the domestic market which includes importers, persons conducting intra-community acquisitions from other EU Member States in addition to foreign e-commerce sellers. Affected parties established outside Germany (i.e., business-to-consumer e-commerce sellers) must contract with an “authorized person” established in Germany to fulfil their obligations.

Scope of the levy

The legislative scope intends to cover all goods mentioned in Appendix E of the EU Directive (simplified):

·       Food containers intended for immediate consumption

·       Packets and wrappers made from flexible material containing food that is intended for immediate consumption

·       Beverage containers with a capacity of up to three liters

·       Cups for beverages, including covers and lids

·       Lightweight plastic carrier bags

·       Wet wipes, i.e., pre-wetted personal care and domestic wipes

·       Balloons, except balloons for industrial or other professional uses and applications that are not distributed to consumer.

·       Tobacco products with filters and filters marketed for use in combination with tobacco products......

Source: https://www.ey.com/en_gl/tax-alerts/german-government-releases-draft-legislation-for-a-single-use-pl