At present, the pricing on the so-called ‘Latte levy’ is unclear.
Minister for Climate Action Richard Bruton is expected to announce a new levy of up to 25% on disposable coffee cups.
At present, the exact level of the coffee cup levy isn’t finalised because further market research is required. However, it’s expected to be set at a range from 10%-25%.
On the introduction of a coffee cup levy, the Minister said: “The introduction of a coffee cup levy has clear benefits for the environment, when you consider that 22,000 disposable coffee and tea cups are used every hour. Our first response must be to reduce the amount of waste created in the first place.
“The coffee cup levy should also lead to savings for consumers who make the switch, as well as savings for retailers who have to carry less disposable stock. In introducing a coffee cup levy, clear pricing information will be vital.
“Clear information regarding price will be important in driving change. We will call on shops to display pricing information so that their customers have full information on; coffee price (i.e. where you have your keep cup), added charge for using a single use cup (which would include the price of the disposable cup and the levy), and coffee price when the customer is sitting in using the premises’ tableware.”
Questions in relation to pricing will be included in the public consultation.
The additional fees are just one of a number of environmental charges set to be announced by the Government. The current plastic bag levy will also increase by three cent to 25 cent and a tax on takeaway food containers is also set to be introduced.
Aside from these measures, medium weight plastic bags – often sold as heavy duty bags – will also be subject to the the plastic bag levy. They’ve previously been exempt from these fees.
A waste recovery levy at €5 a tonne is also set to be introduced. This would apply to the three key waste recovery options – landfill, incineration and export. Finally, an increase to the landfill levy by €5 per tonne to €80 per tonne is also expected to be announced.
These new levies and changes will be introduced in phases.
Phase two is expected to be completed by the end of 2023 – this will include the levy on take-away containers. A third phase will see charges on retail food packaging, such as plastic used for baked goods, fruit and vegetables.
With regards to the ‘Latte levy’, coffee shops will be asked to display two different prices, the price of coffee sold in a disposable cup and the price when a consumer brings their own reusable container.
While the exact rate of taxation hasn’t been settled upon, a public consultation process is expected to be announced today.
All revenue raised from these levies will go into the Environment Fund and will be reinvested in environmental action.
More information on the planned new charges can be found here.
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