New packaging tax meets with anger and distrust

5 May 2008

THE NETHERLANDS – Algemeen Dagblad reports that the recently introduced packaging tax has been greeted with anger and distrust. Most supermarkets will pass on the tax to their customers, and have announced a 1 percent price increase on all their products.

The new tax was introduced by the government to reduce the amount of packaging used by manufacturers.

However, conservative VVD leader Mark Rutte says the new tax is just another way of filling treasury coffers.

He called the argument that the tax was introduced to improve the environment "a lie".

The Socialist Party, which voted in favour of the packaging tax, is having second thoughts and said it would be better if the government came up with a different way of limiting the amount of packaging.

The main trade union federation FNV says the new tax is yet another increase in the tax burden. The government expects the new tax will yield EUR 240 million, part of which will be spent on environmental investments, but most of it will go, as expected, to the treasury.

[Radio Netherlands / Georg Schreuder Hes / Expatica]