A packaging levy will not be introduced in Ireland after Environment Minister Phil Hogan decided it would be a cost to business with few environmental benefits.
The idea behind the plan was that goods which were considered to have excessive packaging would be subject to the levy, while those with less packaging would not, and would therefore appeal to consumers by being cheaper.
It was also decided that a proposed deposit and refund scheme for beverage containers would also not be introduced for the same reason.
Speaking at the Environment Ireland Conference, Phil Hogan said: “I wish to announce today that, after careful consideration, I have decided not to proceed with the introduction of a packaging levy at this time.
“The main reason for my decision is that the introduction of a packaging levy is likely to generate a number of costs – to the legislative process, to public administration, to business – with few identifiable additional environmental benefits, given our very successful packaging recovery and recycling performance to date in Ireland.”
Packaging compliance scheme Repak had opposed the introduction of the levy, as it argued that its members, were already subject to its compliance fees, and therefore the companies would be hit by an additional packaging tax.