Tax changes in 2024 – Tax on plastic products

Tax changes in 2024 - Tax on plastic products

Tax changes in 2024 – Tax on plastic products

On 1 January 2024, a change in legislation came into force which introduced a new plastic tax. This is the result of an amendment relating to the management of certain waste. The Law of 14 April 2023 amending the Act of 14 April 2023 on the amendment of the Act on the duties of entrepreneurs with regard to the management of certain waste and on product fees and certain other acts was published in the Legislative Gazette (“Legislative Gazette” of 2023,  877).
The new plastic tax will affect both producers and consumers. Manufacturers of disposable plastic cups and plates will be required to pay an additional fee on plastic packaging. Consumers will also incur additional costs by paying an additional fee for using single-use plastic cups and containers. These changes will affect both consumers and businesses, including businesses in the retail and wholesale trade, catering businesses and the sale of drinks or food through vending machines.

What is it for?

Poland has come out in favour of implementing the EU directive known as “Single-Use Plastic”, which aims to reduce the negative environmental impact of excessive plastic use. This change in legislation is designed to reduce the problem of littering of oceans, water bodies and forests from plastic products.
The new 2023-2024 plastic tax is included in the amended Act of 11 May 2001 on the duties of entrepreneurs with regard to the handling of certain waste and on product fees ( Journal of Laws, 2001, No. 63,  639 ). The aim of the regulation is to limit single-use plastic products.

Plastic tax – who will be affected?

The new rules apply to virtually every taxpayer. The plastic packaging tax applies to entrepreneurs placing disposable cups and plates made of plastic or food film on the market.
The new obligations on entrepreneurs include the need to achieve a minimum annual levy on the recycling of fishing tackle containing plastic. The levy will gradually increase in subsequent years. If the entrepreneur does not fulfil these requirements, a product charge will apply.
The new obligations of entrepreneurs include the need to achieve a minimum annual levy on the recycling of fishing tackle that is plastic-containing waste. A weight threshold of 5 per cent applies for 2024. This will be gradually increased in the following years:

10% of mass – in 2025,
15% of mass in 2026,
20% of mass in 2027,
25% of mass in 2028,
27% of mass in 2029,
30% of mass – in 2030 and for each subsequent year.
If the entrepreneur does not fulfil these requirements, the so-called product fee applies. Its amount is calculated by multiplying the rate specified by the Minclimate by the difference between the required and achieved level of utilisation, recycling or collection – converted into the mass value of the product. It is important to note that the fee is charged separately for each of the targets set by the government. However, calculations must be done separately for individual products.
Companies are required to cover the costs associated with the collection, cleaning, transport and recycling of waste. The Plastic Tax 2023/2024 is being introduced to reduce the environmental impact of plastic and to incentivise a reduction in the use of single-use plastic products.

From 1 January 2024, consumers are also required to pay an additional amount for disposable plastic cups for drinks and food containers purchased in the catering sector: 20 PLN for cups and 25 PLN for containers. This fee will be collected from catering companies, wholesale and retail outlets, as well as from those who sell drinks or food through vending machines. Further measures implementing the provisions of the EU single-use plastics directive are expected to follow in the future, which will also result in additional costs and taxes for both businesses and end-users.

If you would like to know more ask questions at office@progressholding.pl

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