Municipal Packaging Tax: A New Additional Burden

Despite political promises to reduce bureaucracy, the effort for businesses is growing – especially due to the new municipal packaging tax. Hospitality, retail, and service providers are facing complicated requirements, varying tax rates, and significant administrative burdens. The environmental benefit is controversial, but the impact on businesses is real. What could practical solutions look like?

While the federal government and the EU promise to reduce bureaucracy, municipalities are imposing new burdens: the packaging tax is spreading. After the Constitutional Court ruling at the end of 2024, more cities are planning its introduction.

This article was the Topic of the Week in the newsletter of week 25 in 2025.

Tübingen Leads the Way

Since 2022, Tübingen has been the first German city to impose a packaging tax on single-use packaging. The goal: less waste, more reuse. The Federal Constitutional Court confirmed its legality. Now Heidelberg and Freiburg are following suit, and other municipalities are debating its introduction.

The issue: Each city develops its own regulations with varying tax rates. Businesses face a patchwork of rules.

Growing Bureaucratic Burden

The additional tax affects businesses already struggling under the weight of bureaucracy. DIHK studies show: Hospitality businesses spend 14 hours per week on around 100 legal requirements. Small retail businesses invest 38 hours monthly in bureaucratic obligations.

Who Pays What?

Impacted are sellers to end customers: hospitality, food retailers, canteens, and event organizers. In Tübingen, a single-use cup costs 50 cents, and a straw 20 cents. The tax can be passed on to customers or absorbed by the businesses themselves.

Complicated Details

Tübingen’s regulations consist of a few paragraphs – but 20 pages of explanatory notes with complex details:

Pizza boxes: Tax-free for delivery, taxable for pickup.
Sushi: Taxable with cutlery, tax-free without.
Drive-through: Tax-free versus parking lot with walk-in: taxable.

Businesses must provide proof of usage. In case of doubt, the municipality decides.

High Effort, Unclear Benefit

The regulations cause significant additional effort – for companies and administrations. All taxable businesses must be registered, their information verified, and implementation monitored.

At the same time, the impact is questionable. There is no legal earmarking of revenue for waste disposal. Packaging is already subject to multiple charges: through the Single-Use Plastic Fund, licensing fees in the dual system, and municipal fees.

Better Alternatives Needed

Less waste is a good goal – but the approach should be practical. Instead of additional tax burdens, positive incentives are needed:

Expansion of central return and cleaning structures.
Consultation and training for businesses.
Smart solutions in waste management.
Information campaigns instead of punitive taxes.

The IHK organisation advocates pragmatic solutions in dialogue with politics, administration, and industry. Coordinated measures are better than a patchwork of municipal special approaches.