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Minister Decides to Scrap Proposed Packaging Tax

In the Programme for Government further measures to reduce packaging waste were to be considered, including a ‘levy on packaging’. We already have an EPR (Extended Producer Responsibility) scheme here in the form of Repak. While Repak has its issues it is generally seen as being a relatively fair method of assigning the cost of recycling to those who put most packaging on the market.

The decision by Phil Hogan not to proceed with an additional packing levy is to be welcomed for the following reasons:

  • No other EU country has applied both an EPR scheme and a packaging levy at the same time;
  • There would be additional costs on business and public administration with little additional benefit;
  • Repak fees already constitute a packaging tax of sorts;
  • Repak fees are generally accepted as being proportionate.