The plastic Own Resource proposed by the Commission on 2 May 2018(1) is not a tax, but a contribution to the EU budget designed to incentivise Member States to increase recycling from plastic waste.

If adopted, Member States will provide a contribution to the Union’s budget that will be proportional to the quantity of plastic packaging waste that is not recycled in their territory. However, they will remain autonomous in the choice of the most appropriate measures to reduce plastic pollution. Member States are under no circumstance obliged to introduce a tax and most of them have opted for regulatory measures to reduce their contribution.

The Commission supports the proposed plastic Own Resource, which is fully in line with the subsidiarity principle. The plastic Own Resource is a national contribution and the Commission did not propose to the European Council a tax to finance the 2021-2027 Multiannual Financial Framework.

The primary objective of the plastic Own Resource is not to collect money, but to incentivise Member States to move to a circular economy. If adopted unanimously by the Council and approved by Member States according to their constitutional requirements, it will finance approximately 4% of the EU budget (based on the proposal of May 2018). The gross national income-based contribution of Member States would be reduced accordingly.