Packaging tax is coming: Rising coffee prices in Hesse and Tübingen!

Packaging tax is coming: Rising coffee prices in Hesse and Tübingen!

At a time when coffee to go has become a daily companion for many people, cities in Germany are facing a realignment of their waste policy. This is what our colleagues report Picture that the prices for coffee beans have risen by up to 84 percent and that more and more municipalities are now planning a packaging tax for disposable cups. The introduction of this tax could increase the cost of a coffee in cities like Cologne by up to 50 cents.

Coffee lovers in large cities currently pay an average of around 4 euros for a cappuccino, although prices can even go up to 5 euros. Tübingen, which has been charging a packaging tax of 50 cents for coffee cups since 2022, has generated revenue of almost one million euros, according to the reports. This shows that this measure not only has ecological but also financial dimensions.

The expansion of the packaging tax

In Hesse, 20 cities and municipalities, including the Rhine cities of Wiesbaden, Darmstadt and Hanau, have already sought to introduce a packaging tax. While Frankfurt and Kassel reject this, it remains to be seen how many other municipalities will follow the initiative. A total of 144 cities, including the megacity of Cologne, are already considering such a tax.

However, the form of packaging tax introduced in Tübingen as part of a project to reduce waste is showing mixed results. A study by the University of Tübingen has shown that the tax did not reduce the amount of waste, but the supply of reusable packaging increased significantly. This happened even though the tax turned out to be a bureaucratic challenge for many companies, as the Association of German Chambers of Industry and Commerce (DIHK) found in an analysis.

Bureaucratic effort and future prospects

The fear of an increased bureaucratic burden is only reinforced by previous experiences in cities like Tübingen. Small and medium-sized businesses are particularly hard hit and often have to spend over 14 hours a week on legal requirements. These fears are backed up by a DIHK study, which shows that even small retail stores spend up to 38 hours a month on bureaucratic tasks.

Another problem is the variety of municipal statutes and associated regulations, all of which can be different. Would you like an example? While pizza boxes are tax-free when delivered, they are not tax-free when picked up. Such differences create confusion and significantly increase the burden on companies and local governments.

A look into the future

The effectiveness of the packaging tax is controversial. Many are calling for more effective measures to reduce waste and greater promotion of reusable packaging instead of additional taxes. The federal administration recently confirmed the legality of such taxes, which means we can expect further political discussions in the coming period.

It remains exciting to see how the situation will develop and whether cities can actually achieve the desired effect in their waste criteria. Social pressure and the need for more sustainable solutions will certainly help ensure that this issue remains in focus.

For Cologne consumers, the introduction of such a tax could change the coffee culture in the city. The only question is whether coffee lovers will accept higher prices or whether they will opt for sustainable alternatives.

Sources: Picture, University of Tübingen, DIHK.