Circular Economy
Plastic Tax
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.
References
Supports definition and framing.
Supports definition and framing.
Overview
How it is used
Beyond the UK and EU instruments, several countries apply or propose plastic taxes, levies on bags and packaging, or modulated EPR fees with tax-like effects; the concept features in global plastics treaty discussions on economic instruments.
Why it matters
Plastic taxes are among the first instruments to price the material's environmental externality directly, signalling a shift from voluntary pledges to fiscal policy in plastics governance.