European Interest

How plastic tax may save EU’s post-Brexit budget

Flickr/CuBE Plastics – packagin/CC BY-NC-ND 2.0

There’s one tax that can reduce waste and plug the gap in the European Union’s budget that will be created by Brexit. It’s a tax on plastic packaging. And it’s been put on the table by the European Commission.

Brussels will consider whether the tax should be levied when the packaging is produced, used or disposed of. It will also decide whether there should be exemptions for packaging that is necessary for hygiene or safety.

AS reported by the BBC, the ideas were floated in talks about the next budget period from 2020-2026.

It is estimated the UK’s departure will leave a permanent hole in the budget of some €12-13bn per year.

According to European Union Budget Commissioner Günther Oettinger, the gap would have to be closed with 50% spending cuts – which could affect some major programmes – and 50% fresh money.

As for the tax on plastic packaging, Oettinger said it could also help reduce the quantity of plastic used in Europe.

He also proposed that the EU should receive the income from the Emissions Trading Scheme, which aims to curb global warming and currently goes to member states, reported the BBC.

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