New tax on plastic packaging reshapes manufacturing and consumer costs

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The recently enacted tax on non-reusable plastic containers is set to affect manufacturing firms across the board. From Foia de Castalla, a region where this sector is highly concentrated at the provincial level, the regulation is already raising management costs and dampening competitiveness. Manufacturers fear a steady loss of customers who may shift to packaging made from other materials not subject to the new levy. The industry also highlights technical and administrative hurdles in enforcing the regulation, complicating everyday operations.

The tax began on January 1 and imposes 0.45 euro per kilogram of non-recycled plastic used in producing non-reusable packaging. With inflation pressures and a moratorium request led by the Spanish Association of Plastics Manufacturers, the move has drawn criticism for its complexity. Critics note that Spain stands out as the sole EU country implementing this particular tax, a point raised in comparative discussions about policy design and impact.

Foia de Castalla sits at the heart of the Alicante plastics sector, home to roughly 300 companies dedicated to the industry. According to Héctor Torrente, director of the regional business association (Ibiae), the measure already pushes up costs as firms must reinforce administrative structures to comply with the tax, amid numerous uncertainties and obstacles. He notes that accurately identifying the composition of plastics and ensuring traceability are difficult tasks, adding that non-reusable plastics currently face taxation even as demand for recycled plastic remains unmet.

One of the more concerning issues for the sector is the potential loss of competitiveness. Ibiae’s manager warns that the risk of losing customers could rise as some buyers may opt for containers made from other materials such as cardboard.

New tax on plastic packaging brings industry to war point

Ibi’s ITC Packaging echoes this stance, noting a shift toward recycled, biobased, and compostable materials, though availability is limited and prices are high. The tax is framed as a revenue-raising tool that is expected to ripple throughout the supply chain. The company argues that if the policy applied to all packaging materials and funding from the levy supported improvements in waste management systems, it would be more effective in reducing environmental impact.

New tax will raise the cost of shopping carts

Industry leaders warn that the levy will push up prices for many plastic-wrapped products, further increasing the cost of a typical shopping trip. A major challenge is that much recycled polymer used in packaging is not suitable for contact with food, complicating compatibility with current products and processes. The combined rise in raw materials and energy costs squeezes margins for container manufacturers, likely transferring the burden to consumers at the point of sale.

Representatives from major employer groups highlight the inflation backdrop and energy costs as factors that make sustaining margins difficult without passing costs along to customers. The consensus is that consumers will feel the impact of the tax as prices rise in everyday goods.

The introduction of the new rate has prompted a broad response from associations, packaging firms, and tax professionals across food and beverage, cosmetics, distribution, and retail sectors. Calls for postponement and reconsideration have centered on cost, complexity, and practical implementation. Bernardo Guillem of Plásticos Inden from Ibi described the tax as chaotic and criticized its rollout while stressing the need for more straightforward governance and clearer guidelines.

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