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Spain considers a new green tax

Spain considers a new green tax

Spain considers a new green tax on non-recyclable plastic packaging that could raise around 700 million euros. The proposal comes straight from the environment minister Teresa Ribera.

The motion aligns with the plan moved by the European Union to eradicate the use of non-recyclable plastic by 2021 in order to reduce pollution. Indeed, the proposed tax would be worth about 0.45 cents per kg. of non-reusable plastic packaging. “This is a indirect tax which will be levied on the manufacturing, import or intra-EU acquisition of the non-reusable plastic packaging used on the Spanish market”, explains Ribera.

However, the desire to reuse reconditioned plastic is a goal that Spain has been promoting for some time. Already in 2018, the designers Juanjo Oliva and Moisés Nieto organized a fashion show with garments made with PET fabric.

La Spagna pensa ad una nuova tassa green copertina 1
On the cover: young people are seen surrounded by rubbish, mainly plastic bags and bottles, at dawn at Malagueta beach after celebrating the summer solstice in Malaga, Spain June 24, 2018. REUTERS / Jon Nazca

The new green tax would have raised around 724 million euros in 2017. However it will have to go through several phases before approval in parliament.

The issue, said the minister, is that Spain generates less profit than the European Union on “green” taxes. The total reached by Spain indeed amounted to 1.83% of GDP in 2017, compared to the EU, whose total reached 2.40%. With this proposal, the minister hopes to alleviate the deficit further burdened by the crisis caused by the coronavirus pandemic. Actually, the government estimates that the deficit has increased by 10.34% of GDP since last February’s amount corresponding to 1.8%.

In any case, the project for a green tax is one of the solutions promoted by the European Union to meet the proposed loan of around € 750 million to support countries following the pandemic.

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