Plastic is widely used because it is durable, useful, and abundant. We are oblivious to it since it is so ingrained in our daily activities. The majority of it—from the plastic-wrapped vegetables in supermarkets to the containers for creams, lotions, pills, and medications—is used just once before being thrown away in landfills or worse.

For instance, the European Union (EU) introduced the European Green Deal in 2019 as part of global efforts to combat climate change. This initiative aims to shift the economy from a linear one to a circular one that eliminates waste and pollution. The plastics tax imposed on single-use plastic, plastic packaging, and microplastics is an important step in combating plastic pollution.

However, the EU has imposed a national contribution from each of the 27 member states depending on the quantity of non-recycled plastic packaging trash it produces, as opposed to a local tax. States have very different tax structures; some concentrate on packaging in general while others solely tax single-use items. For plastic goods made in the United States or elsewhere, some countries have varying taxes. In other words, member states are free to impose the tax in their own manner and under their own set of laws.

The end consequence is a very dispersed landscape. It calls for the appropriate approach, resources, and knowledge, particularly in the areas of compliance and global supply chains. For instance, Spain's Special Tax on Non-Reusable Plastic Containers went into force on January 1 and imposes a fee of €0.45 per kilogram of Non-Reusable Plastic.

A Workable Solution 

Technology has become a crucial component in aiding businesses in finding solutions to their problems, as has been the case with many difficulties in recent years. A cloud-based tool called SAP Responsible Design and Production was developed expressly to make it easier to design items for a circular economy and to aid with the entire process associated with the new levies.

SAP Responsible Design and Production gives businesses access to data on logistics and materials, including specifics on the composition of packaging, in addition to striving to automate tedious reporting processes. According to Monasor, "with this tool, businesses will be able to calculate and submit reports in relation to the Spanish plastics tax and lower the risks of non-compliance."

The Goal

Over time, SAP Responsible Design and Production may help organizations improve their capacity for measuring and managing sustainability KPIs as well as their ability to see material flows more clearly across all business processes. Improved traceability reduces compliance risks and aids in improving the accuracy of plastic tax payments. In order to lower these taxes and increase circularity, which is the tax's main objective, the answer can also reform laws and taxes, as well as optimize the materials used in packaging.

Source: https://news.sap.com/2023/01/sap-responsible-design-and-production-manage-plastic-taxes/