Bakers warn against municipal packaging tax

The municipal packaging tax, introduced in some cities, applies to all to-go products, including coffee and snacks from artisan bakeries. The association is demanding a halt to the tax in an open letter.

"The municipal packaging tax is becoming a real stress test for many artisan bakeries," says Roland Ermer , President of the Central Association of the German Bakery Trade . "Less revenue, more bureaucracy, and daily arguments with customers – we simply cannot expect our businesses to bear this burden in the current economic climate." The bakery trade is particularly affected, but so are butcher shops, pizzerias, and kebab shops. The single-use packaging tax is currently levied on to-go products in some cities, such as Tübingen, Konstanz, and Freiburg. Other municipalities are considering its introduction. In Potsdam, the capital of Brandenburg, the packaging tax was originally scheduled to take effect on July 1, 2026. However, following criticism from the business community, the start date has been postponed to October 1.

Freiburg im Breisgau has had a packaging tax since the beginning of 2026. It amounts to 50 cents on disposable cups and 50 cents on containers for hot food. A further 20 cents is levied on each disposable cutlery set. According to a recent survey conducted by the Freiburg Chamber of Industry and Commerce (IHK) among 107 member companies, 66,3 percent of respondents reported a decline in sales of coffee and hot drinks to go, and 63,2 percent reported a decline in sales of hot food to go. Nearly half of the companies surveyed recorded a decrease in sales of single-use packaged takeaway items.

Roland Ermer is strictly against the packaging tax. Photo: © Central Association of the Baking Trade

"For many bakeries, the to-go business is a crucial source of revenue. If customers suddenly forgo their coffee or snack, it directly impacts the economic foundation of these businesses," says bakers' association president Roland Ermer. Significant sales and profits are diminished. Ultimately, this results in a lack of precisely the money that is needed for investments, higher wages, or the training of young people.

The baking trade has now addressed an open letter to the German Association of Towns and Municipalities , demanding that municipal packaging taxes be suspended immediately where they have already been introduced and that further introductions be avoided.

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A survey conducted by the Chamber of Industry and Commerce (IHK) of the Southern Upper Rhine region among Freiburg restaurateurs and bakers 100 days after the introduction of the tax reveals a massive impact on daily operations. 83 percent of businesses complain of additional workload, with almost one in three reporting an extra one to three hours of work per day.

"Our businesses need relief, not new burdens. Sales assistants are in the store in the morning, serving customers every minute – and now they have to explain tax rules at the checkout," said Roland Ermer.

Main problems of the surveyed companies:

✔️ Complicated processes at the sales counter, 

✔️ Additional need for explanation to customers   

✔️ A "considerable additional administrative burden"

Customer acceptance is also low, according to 71 percent of business owners. They report increasing conflicts in customer interactions. Half of all companies (53 percent) have discussions with customers about the packaging tax several times a day or week. Only 14 percent report experiencing no conflicts whatsoever.

"The packaging tax is increasingly poisoning the atmosphere in retail," warns Ermer. "Bakery sales assistants are becoming the lightning rod for political missteps. Many customers react with annoyance or even leave their goods at the checkout."

According to the Chamber of Industry and Commerce (IHK), customers frequently refuse to buy products when additional packaging costs are incurred. This results in lost revenue for businesses and alienates long-term, loyal customers. Many companies also believe that the desired environmental impact is not being achieved. 78 percent of companies report that single-use packaging remains the preferred option. Ermer states: "Reality shows that people want practical solutions for everyday life – not a penalty tax on takeaway coffee."

Source: Central Association of the Baking Trade; Chamber of Industry and Commerce of the Southern Upper Rhine

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