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Guidance relating to single-use packaging tax
One of the most discerning observations of the past year has been the sharp increase in the deployment of environmental taxes. Through the taxation of elements that contribute to the proliferation of environmental issues that impact society today, the underlying objective of these taxes is ultimately the improvement of ecological affairs. This is a stark example of how countries can exploit fiscal measures to serve wider societal agendas.
More recently, the United Kingdom and Spain have introduced a Plastic Packaging Tax (PPT). Portugal is the latest country to propose a similar initiative.
Portugal has recently published guidance relating to a contribution required on single-use packaging made of either plastic or aluminium (or a combination of the two). This is expected to apply on read-to-eat meals and takeaways.
The tax was initially expected to come into effect on 1 January 2023 but has been delayed until September 2023.
Tungsten will follow developments in relation to the tax and assess whether we can support the upcoming tax in Portugal.
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