There will be no plastic tax in 2021 for consumers and businesses, the government announced on 28 August.

After its extraordinary meeting on 17-20 July, the European Council concluded that such a tax will be levied on member states. It will be calculated according to the weight of non-recycled plastic packaging waste, up to 80 cents per kilogram, so as to penalise the biggest polluters. It’s part of the Next Generation EU recovery plan, which proposes a €750 billion instrument to help revive countries impacted by the health crisis, in addition to the €1.1 billion foreseen for 2021-2027.

Environmental tax avenues

When asked by MPs Laurent Mosar (CSV) and Gilles Roth (CSV) on its application in the grand duchy, prime minister Xavier Bettel (DP), finance minister Pierre Gramegna (DP) and environment minister Carole Dieschbourg (Déi Gréng) replied that the Luxembourg government would cover this tax, at least initially. It will enter into a budgetary appropriation entered in the state budget for the fiscal year 2021.

For the rest, the ministers indicated all the same to continue “the study of new avenues in environmental taxation within the framework of the tax reform to come”. 

The government has also planned to end plastic packaging for fresh fruits and vegetables from 2022.

This article originally appeared in French on Paperjam.lu and has been translated and edited for Delano.