New plastic packaging tax triggers cost pressures and competition concerns for Spanish manufacturers

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The new tax on non-reusable plastic containers is shaping costs and competitiveness for manufacturers

The introduction of a tax on non-reusable plastic containers is creating noticeable effects for manufacturers. Reported from Foia de Castalla, a hub where many companies in this sector are concentrated at the provincial level, the regulation is already driving up administrative costs and eroding competitiveness. There is a clear concern among producers: customers may shift to containers made from other materials that are not subject to the new levy. The industry also points to technical and administrative hurdles in enforcing the rules.

The tax began on January 1, at a rate of 0.45 euros per kilogram of non-recycled plastic used to produce non-reusable packaging. With inflation ongoing, and amid calls for a moratorium from the Spanish Association of Plastics Manufacturers (Anaip), critics note the policy is particularly complex to implement. Some observers also point out that Spain stands out in the European Union for taking this tax approach, sparking comparative critiques.

Foia de Castalla sits at the heart of the Alicante plastics sector, hosting around 300 companies in the field. Héctor Torrente, director of the regional business association, notes that the measure already adds costs as firms must bolster their administrative structures to ensure compliance. He explains that accurately identifying plastic compositions is challenging and that the requirement to trace materials adds another layer of difficulty. Torrente also stresses that current non-reusable plastics are taxed more than they can be offset by recycling, and the industry does not yet produce enough recycled plastic to meet demand.

One major worry remains the loss of competitiveness. The regional association’s manager highlights the real risk that customers might switch to containers made of other materials, such as cardboard, to avoid the tax burden.

In Ibi, ITC Packaging shares a similar perspective. The company notes that while recycled, biobased, and compostable materials are increasingly used, these options remain limited in supply and costly. The tax is viewed as a revenue-raising measure that will ripple through the entire packaging chain. A broader approach could improve waste management if the levy applied to all packaging materials and if collected funds supported upgrades to collection and processing systems.

The tax is expected to push up prices for many products wrapped in plastic. Industry voices warn that most recycled polymers are not suitable for food contact, complicating product safety and compliance. With higher raw material and energy costs squeezing margins, manufacturers may pass some of the burden onto consumers, affecting household spending on packaged goods.

That change has spurred a wider chorus among associations, companies, and tax consultants across sectors such as food and beverages, cosmetics, distribution, and retail. They have called for postponement and reconsideration of both the rate and its necessity due to cost and implementation challenges. Bernardo Guillem, manager of Plásticos Inden in Ibi, criticized the policy as chaotic and questioned its practicality, while urging a thorough review of how it aligns with broader waste management goals.

Citation notes: The above perspectives reflect statements from industry groups and regional associations in relation to the new packaging tax and its impact on operations and market dynamics in Spain. Critics emphasize administrative complexity, potential price increases, and competitiveness concerns as key issues for consideration. (Cited from Ibiae and related industry bodies.)

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