Credit image: Marco Verch, Flickr
The impact of Italy’s new Plastic Tax is expected to be less than originally intended as it will not concern compostable materials or those produced with recycled plastic (R-Pet), the use of which is spreading in packaging for fruit and vegetables. Following parliamentary debate, other changes to the tax are also in the pipeline. The new tax was originally set to tax plastics by €1 per kilo; but this is set to be cut to between €0.40 and €0.80 per kilo. The new tax is expected to generate revenues of €1.1 billion in 2020 for the Italian government. As for the impact on the private sector, the Plastic Tax is estimated to cost Coca-Coca Hbc Italia approximately €40 million each year.