Circular Economy
Plastic Tax
A tax on plastic — usually virgin plastic or packaging with insufficient recycled content — designed to shift markets toward recycled and reusable material.
Definition
A plastic tax is a fiscal instrument levied on plastic production, products or packaging to internalise environmental costs and incentivise recycled content, reuse or reduction. Leading examples include the UK Plastic Packaging Tax (since 2022, charged on packaging with less than 30% recycled content) and the EU's plastic own resource, a national contribution calculated from non-recycled plastic packaging waste.
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