Municipal packaging tax – a burden on the catering industry or an incentive for sustainable packaging?

The municipal packaging tax is causing discussions in the catering industry, in retail and among consumers. Since the Federal Constitutional Court's ruling on January 22, 2025, it has been clear: municipalities are allowed to levy a tax on disposable packaging. But what does that mean for companies, restaurateurs and consumers? In this article, you will find out everything you need to know about the municipal packaging tax.

What is the municipal packaging tax?

The municipal packaging tax is a levy on disposable packaging, disposable tableware and disposable cutlery that is set individually by cities. The aim is both to reduce the amount of waste and to generate additional income for the municipalities. The tax differs from city to city in terms of its amount and the specific implementation. A prominent example is the city of Tübingen: Since 2022, a tax of 50 cents per disposable packaging and 20 cents per disposable cutlery has been levied here. A fast-food chain had sued against this - but without success. The Federal Constitutional Court ruled on January 22, 2025 that cities may introduce such taxes.

Who has to pay the packaging tax?

The tax liability primarily affects restaurants and retailers who sell food or drinks in disposable packaging. These include:

• restaurants, snack bars and fast-food chains
• Cafés and bakeries with to-go offers
• delivery services and catering companies
• Kiosks and gas stations with sales packaging

Companies can either bear the additional costs themselves or pass them on to customers through price increases – which is already happening in many places.

How does the packaging tax work?

The exact implementation of the packaging tax is in the hands of each city . The billing method varies from municipality to municipality and can be found in the respective statutes. The tax is charged for each disposable packaging issued, regardless of whether it is cardboard, plastic or bioplastic packaging. This regulation leads to an additional burden for restaurateurs, who are already bearing rising costs for energy, personnel and other charges.

In which cities is there already a packaging tax?

Following the example of Tübingen , Konstanz has now also introduced a packaging tax. Other cities such as Freiburg, Bremen, Leipzig and Hamburg are considering or planning similar regulations. At the same time, there are also cities such as Munich and Berlin that are rejecting such a tax for the time being - partly out of concern about distortions of competition. A nationwide solution is currently not in sight. This means that companies in different cities are burdened to different degrees - a problem especially for chains and national catering establishments.

Which to-go packaging is worthwhile in view of the packaging tax?

In view of the new packaging tax, many companies are asking themselves the question: Is it worth switching to reusable packaging? And is it even worth using sustainable to-go packaging if all disposable packaging is taxed the same? The answer to both questions is yes. And for several reasons:

Tax avoidance through reusable alternatives

Since the packaging tax only applies to disposable packaging, catering establishments can save costs by offering reusable packaging . Many cities promote reusable systems, for example through deposit solutions or cooperation with local suppliers. Although reusable containers initially represent an investment, in the long term, reusable items are cheaper than permanently increasing taxes on disposable products and offer many advantages .

Environmental awareness as a competitive advantage

Customers are increasingly paying attention to sustainability. Companies that offer environmentally friendly alternatives can stand out from the competition and strengthen an environmentally conscious image. And don't forget: increased costs or not - avoiding waste is always a good thing for nature and the environment.

Preparation for future tightening of laws

The packaging tax could be just the beginning. Further measures to reduce single-use plastic are already being discussed in the EU. Those who rely on sustainable alternatives now will be better prepared for future regulations. In addition, municipalities can set their own packaging taxes. It is therefore quite possible thatenvironmentally friendly single-use packaging will be taxed less depending on the municipality.

Packaging tax: advantages and disadvantages

While some cities see the packaging tax as a sensible way to avoid waste, many companies criticize the additional costs and distortions of competition. Even though the packaging tax presents new challenges for restaurateurs, it also has positive aspects.

What are the advantages of the municipal packaging tax?

A clear advantage is the potential reduction in single-use waste, as consumers and companies are more motivated to use reusable solutions. In addition, cities benefit financially from the additional tax revenue that could be invested in environmental projects or city cleanliness. If the tax revenue is used appropriately, many benefits result from the tax.

What are the disadvantages of the municipal packaging tax?

On the other hand, the packaging tax brings with it considerable disadvantages for the catering and retail sectors. The additional financial burden particularly affects small businesses, which are already struggling with rising costs. In addition, the inconsistent introduction of the tax leads to an unfair competitive situation. Whether the measure primarily reduces the amount of waste or primarily fills the city's coffers remains to be seen over time.

Municipal Packaging Tax – Our Recommendation

"Burden for the catering industry or incentive for sustainable packaging?" That is the title question of this article. The answer is: Yes. The municipal packaging tax can certainly be perceived as a burden and criticized. Simply because companies can be affected by different levels of taxation depending on their location, which is simply unfair.

Our recommendation is to switch to environmentally friendly disposable and reusable packaging due to the many advantages of these and not just to see the downsides of the packaging tax. Instead of just complaining about the rising costs, companies can use the situation as an opportunity: Switching to sustainable to-go packaging can not only reduce the tax burden, but also protect the environment and make your own business future-proof .