Spain still going ahead with a 0.45€/KG tax
Despite appeals from sectors across the trade to suspend the application of the new Plastic Tax, the Spanish Government has allowed this to go ahead, effective from 1st January 2023.
After the decision some time ago of the Italian government to suspend the law, Spain would be the only European country to follow on with its implementation. The FIAB (Spanish Federation of Food and Beverages Association) pleaded with the Spanish Economy Ministry to suspend the law due to its inflationary effects.
It has been calculated that the total new cost of the direct impact for the industry could be of around €1 billion euros and in addition a further €1 billion on manufacturer responsibility.
An increase of 0,45 eur/kg in the packaging costs of food would contribute to a current level of inflation in food products of 15 to 20% as compared to the previous year, according to a consensus forecast of several institutions.
The impact on lowering consumption could be significant as Spanish consumers are reluctant to accept an additional hit to their budget.