Italy's proposed tax on all virgin plastics has been postponed until 1 January 2021, the government confirmed. The tax initially due to come into effect on 1 July 2020. Due to the coronavirus pandemic, the tax was then pushed back.
All single-use items will be impacted by the tax with the exception of those produced from compostable bioplastics or recycled plastics.
From the plastics industry in the country, the initial reaction to the tax was mixed. However, the postponement of the tax was welcomed by the industry. The postponement announced in April. However, to encourage the use of more recycled content, the tax may do little given the current spread between prices in recycled PET (R-PET) and the virgin polyethylene terephthalate (PET) markets.
The spread between virgin PET and R-PET food-grade pellets (FGP) was €675/tonne as of 12 March. This means converters in the current market situation could afford to buy virgin PET and still make a profit after paying the €450/tonne tax.
Moreover, concerns have previously been stated by some players in polymers markets that the tax will have a negative impact on the Italian public’s perception of plastics. In the recycled polyolefins markets, this may be felt more.
At least 95 percent of the waste used in food-grade recycled material production is required by the European Food Safety Agency (EFSA) to be sourced from food-contact material and be fully traceable throughout the chain.
