2023 saw an exponential growth in the implementation of Environmental, Social and Governance (ESG) taxes. ESG taxes are a developing, and ultimately expanding, part of the tax landscape, alongside growing consciousness of ecological concerns. We can expect to see many similar initiatives launched in 2024.

Italy has been pondering the introduction of a plastic tax for some time, but this has been postponed several times. However, the Italian government has confirmed that a plastic tax in the country will now take effect from 1 July 2024.

As the name suggests, the tax is designed to reduce the use of single-use plastic (referred to as MACSI) in Italy.

Tungsten Automation today facilitates similar plastic tax initiatives in Spain and the United Kingdom.

Key elements of the tax include:

• Plastic tax is charged at 0.45 Euros per kilogram on specific entities.
• The plastic tax introduction will trigger multiple compliance obligations, including the filing of quarterly tax returns, making payments, accounting entries and the separate storage of MASCI.
• Penalties are expected to apply, both in the event of non-payment and late payment, with additional fines for the late filing of quarterly tax returns.

The plastic tax in Italy is complex and requires further consideration. Tungsten Automation is analysing the requirements concerning the tax and our obligations in respect of it.