Tax on non-recycled single-use packaging plastics
The month of April 2022 was marked by the news of this tax that would come into force on January 1, 2023. All the affected sectors got down to work in accordance with the indications on the impact of this product on the environment, the main reason for this tax. Industrias Químicas Iris has been applying reduction and recycling measures for a circular economy, so any measure aligned in the sense of reducing packaging waste, especially non-recycled plastic, is positively valued. Although even today it is known that there are points of application that are not sufficiently clarified, information lines are already being developed from different associations that allow us to have some light on this matter.
It’s known that the tax itself taxes the use of non-recycled plastic material with 0.45 €/kilo in packaging, for which we must know what material we use in our packaging and try to modify our consumption by using reusable plastic or making certain modifications when using it. We must obtain technical information on the material from our suppliers, as well as, for example, traceability in terms of imports from EU countries or third parties.
Following the statements of different accredited sources (CADEPA, ASEFAPI, AEAT, etc.) we find the following:
- It is the non-reusable packaging that will be taxed. Reusable packaging will be exempt, as well as packaging intended for medical, sanitary or agricultural use, as well as those whose destination and invoicing is outside Spain.
- Other uses other than those mentioned above, as well as export products invoiced in Spain may also be exempt if they can prove, with a Recycling Certificate, the amount of recycled plastic material that makes up the packaging.
- Destinations and markets not included in the above options, as well as 100% virgin plastic material must pay this tax.
For the payment of the tax, Order HFP/1314/2022, of December 28, which approves form 592 “Special tax on non-reusable plastic containers. Self-assessment” and form A22 “Excise tax on non-reusable plastic containers. Request for refund”, which determine the form and procedure for its presentation and regulate the registration in the territorial registry, the keeping of accounts and the presentation of the stock record book.
In turn, in our autonomous community, last December 1, Law 5/2022, of November 29, of the Generalitat, on waste and contaminated soils for the promotion of the circular economy in the Comunitat Valenciana, was published in the Diari Oficial de la Generalitat Valenciana (Official Gazette of the Generalitat Valenciana).
This law is in line with Law 7/2022, of April 8, on waste and contaminated soils for a circular economy of state character and it is the one that promotes the Tax.
What steps can producers and consumers of this material take?
Deadlines have been set for the adaptation of production, use and knowledge related to the regulations and taxes arising from it starting with the registration in the Register of Producers of product and , for example, continue to notify the amount of packaging introduced into the market (it is done since 2021). By 2035 it is expected that TOTAL PLASTIC used in packaging will be recycled or reusable. It is certainly a difficult milestone but our environment and humanity are at risk.
Royal Decree on Packaging and Packaging Waste: another procedure to take into account.
Last December 28th, the BOE published the Royal Decree on Packaging and Packaging Waste, which must be read by all companies.
This regulation aims to reduce the environmental impact of packaging and promote its reuse and recycling. To this end, it establishes a series of obligations that affect the packaging used in the sector. More details here: https://asefapi.es/actualidad/2022/12/28/real-decreto-de-envases-y-residuos-de-envases/. It is important not to confuse the royal decree and the plastic tax!
The problems about this implementation have been expressed in certain points of interest that affect negatively as the uncertainty of the application or impact but also sanctioned if not scrupulously attended, shortage (and increase in price) of recycled material for all demanding sectors, repeated increase in price (after the energy and fuel increases, the war in Ukraine, etc …) of the product, legal doubts arising from the tax on exports etc…. Little by little, points related to this important subject are being elucidated. You can find more information here, in ASEFAPI: https://www.asefapi.es/files/archivo_file_111111_112824.pdf
However, it is advisable to follow closely the evolution of the information with the resources we have available.
New terms: SIRAP and SCRAP.
Both are a means to stimulate prevention, eco-design and recyclability of products, and to this end comprise a series of obligations, which are assumed through individual (SIRAP) or collective (SCRAP) systems of extended producer responsibility (SRAP).
There are several organizations dedicated, among others, to the creation of SCRAPS. This provides a documented information environment on how to assess, restructure or apply as needed this tax. The aim: to assist the members of these organizations with the relevant information to help them to implement the application correctly.
These obligations are mainly related to prevention, placing on the market and waste collection (with a minimum quantity required). Extended producer responsibility currently applies to various waste streams such as packaging, WEEE, batteries and accumulators, oil, tires, etc.
A consumerist society has led to a dangerous increase in waste. This waste has become a major environmental problem, so its efficient management is essential. There are many solutions to solve this problem, and the fight against fraudulent imports and exports of products subject to extended producer responsibility is one of them.
With all this, these organizations create informative environments (Workshop) to try to provide reliable information on everything related to this taxation, helping us all to understand and correctly put into practice all the obligations outlined above. We thank them for their efforts.