Fiscal policy: The plastic tax probably won't come in 2027 after all - with consequences for Klingbeil's budget
The Union is opposing tax laws proposed by Finance Minister Klingbeil. In addition to the plastic tax, there is resistance to a levy that has been discussed for a long time - one that a withdrawal from would likely be embarrassing.
Germany's ruling coalition, comprising the Union and SPD, is struggling to reach an agreement on planned tax increases on plastic packaging, sugary drinks, and cryptocurrencies. The coalition faces a tight deadline, with the parliamentary committee set to finalize the budget for next year by the end of next week. The Union is opposing the plastic tax, citing concerns over bureaucratic burden and potential negative impacts on the economy.
The tax on plastic packaging was expected to generate €805 million in revenue for the federal government in 2024 and €1.4 billion annually from 2028. The coalition partners are set to continue negotiations, with a decision expected by the weekend.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
