International Review of Waste Management Policy - Department of ...

28.0 Packaging Taxes - International
28.1 Outline of Policy
Packaging taxes are typically measures used to affect the production and
management of packaging wastes. In most instances, packaging taxes are classified
as an example of a ‘consumption’ tax whereby a levy is applied with the aim to
discourage excess consumption and waste generation. Such levies can affect supply
and demand of packaging through influencing the use of packaging materials,
generally seeking to shift consumption towards packaging with lower environmental
impacts.
Levies are applied to materials used for packaging containers (normally in the retail
sector). Varying rates are applied depending upon the materials used. These
materials include (amongst others) different types of plastic, cardboard, aluminium,
glass and wood. The levy is normally applied as a weight based incentive, but can also
based on volume when concerned with liquid packaging, especially where the
intention is to encourage re-use. 589
28.2 Where Has the Policy Been Applied and Why?
Within the EU, Denmark, Belgium and the Netherlands have each applied a form of
packaging tax. Product taxes in Belgium are discussed in further detail in Section
30.0.
Denmark has had a packaging tax in operation since 1978, with significant changes
made over the last decade. 590 Between 1999 and 2001, Denmark introduced a more
sophisticated version of the tax which removed fiscal equality between different
packaging materials. The revised taxes are now determined through reference to life
cycle-based assessment of the environmental damages associated with the different
materials.
The most recent country to adopt a packaging tax is the Netherlands, adopting their
packaging tax in January 2008. The tax in the Netherlands is known as the Carbon-
Based Packaging Tax. The tax considers the life cycle impact of materials based on
greenhouse gas emissions and is applied using a relevant metric to each material.
It appears that in both the Netherlands and in Denmark, the tax has been
implemented for a variety of objectives including:
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� Waste prevention;
589 National Environmental Research Institute, Denmark (2006) The Use of Economic Instruments in
Nordic and Baltic Environmental Policy 2001-2005, Final report for Nordic Council of Ministers, 2006.
590 ECOTEC in association with CESAM, C. U. (2001) Study on Environmental Taxes and Charges in the
European Union and its Member States, Final report for the European Commission, April 2001.
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