How the Plastic Tax could affect the performance of the stocks of companies involved in waste collection and processing

The Plastix Tax which will come into force in Europe during 2021 could create a virtuous circle in the stock market listings of companies that deal with waste recovery and sorting, but a question for other companies in the plastics supply chain. Let's see what the FOL editorial team suggests.

The plastic tax topic that was on the agenda for a long time last autumn is back in vogue. The Italian plastic tax will start in January 2021 and provides for the payment of 45 cents for each kilo of plastic disposable products sold.

Last July, the Minister of Economy Roberto Gualtieri pointed out in a hearing in the Chamber of Deputies that the 2021 budget law will work in order to avoid duplication and excessive burdens for businesses, i.e. in order to avoid double taxation between the Italian plastic tax and the European one (also starting in January 2021).

The latest press reports speak of the possibility of expanding the scope of the plastic tax to include wholesalers. According to what was reported by Il Sole 24 Ore, the government is in fact working on the possibility of expanding the scope of application of the plastic tax to include wholesalers. The possibility of including large-scale retail store operators is also being studied.

The newspaper belonging to Confindustria explains how in the next financial maneuver or in a related tax decree a balance of the tax structure consistent with the market will be sought, the univocal definition of the products on which it will be applied and the reduction of administrative procedures and burdens .

The headlines on Piazza Affari that look interested

Developments also watched with interest by some players on Piazza Affari. The application of the plastic tax is in fact a positive driver for investments in waste treatment and recycling plants.

Particularly exposed is Hera (25% Ebitda) which, with the acquisition of Aliplast , has already been producing plastics and recycled products for some years. “The products in this segment will have ever greater use – the Equita SIM experts point out – precisely due to the introduction of specific taxes which in the coming years will be further tightened by European directives (in Europe taxation of 0.8 euro per kg)”.

The Italian government will also have to issue a specific directive on the circular economy strategy in the coming months "from which we expect a boost in investments in waste treatment plants", adds Equita who indicates a significant exposure also for A2A (24% Ebitda) and IREN (18% Ebitda). Acea is less exposed (5% Ebitda).

Article from the FOL editorial team