Italy's plastic packaging tax, which was set to enter into effect on 1 July 2021, has been postponed. It is expected that it will now come into effect in January 2022. The effective date for the tax has already been delayed several times.

The tax is aimed at single use plastics, with recycled plastics and compostable biodegradable plastics set to be exempt.

The amount of the tax is set at 0.45 €/kg. It is intended to apply to a wide range of products including bottles, bags and food containers made of polyethylene, tetra packs, packaging made from expanded polystyrene, rolls of pluri-ball plastic and plastic caps.

Persons subject to the new tax will include:

• Manufacturers of goods manufactured in Italy
• Italian business purchasers of plastic goods purchased for the purpose of their economic activity, if the goods come from another European Union (EU) Member State
• Sellers of plastic items, where the goods are coming from another EU Member State and are purchased by a private consumer
• Importers for manufactured goods coming from countries outside the EU

Full details of how the tax will be implemented and administered were expected to be announced in April 2021 but have not been published yet.

Although the tax has been delayed, businesses that are likely to be affected by it should start planning now on how to meet their obligations and to identify opportunities to reduce reliance on single use plastics in their supply chains and processes.

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For additional information with respect to this Alert, please contact the following:

Studio Legale Tributario

Anselmo Martellotta, Milan | Anselmo.martellotta@it.ey.com

Nicoletta Mazzitelli, Rome | nicoletta.mazzitelli@it.ey.com

Stefano Pavesi, Milan | stefano.pavesi@it.ey.com

Anna Paola Deiana, Turin | anna-paola.deiana@it.ey.com