Italy’s government has determined to backtrack on a disputed tax on plastic in its 2020 budget in the face of opposition from producers in a region where the ruling events face a key local election in January.
However, in search of to maintain a focus on the environment, it declared a steep cut in sales tax on biodegradable tampons. Both modifications shall be introduced in amendments to the budget, which needs to be approved in parliament by the end of this year.
The tax on the production of single-use plastic was presented as an eco-friendly measure and originally aimed to raise 1.1 billion euros ($1.21 billion) subsequent year.
The plan received a hostile reception in the northern Emilia Romagna region, which holds an election on January 26, where the binding governor from the ruling Democratic Party (PD) faces a severe problem from the right-wing League.
A loss in the traditionally left-leaning Emilia Romagna would risk destabilizing Italy’s ruling coalition of the PD and the anti-establishment 5-Star Motion, already split on points such as eurozone reform, immigration, and the justice system.
Plastic packaging is a significant source of revenue and employment in Emilia Romagna, one of Italy’s most industrialized areas.
The federal government will drastically reduce the plastic tax, with a brand new revenue goal of 330 million euros, PD senator Dario Stefano said Friday.
The federal government says it can make up for the shortfall since an early-retirement program launched this year is proving less costly than expected.
It sought to keep up a commitment to green policies, in addition to appealing to the female vote, by paring the tax on eco-friendly tampons.