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Latte levy will hit thousands of jobs and may close businesses, industry says

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Using a law passed last year, the Coalition plans to levy 20 cent on paper take-away coffee cups to discourage their use and cut waste.

The report, by economist Jim Power, argues that forcing consumers to replace disposable paper cups with reusable versions could, by 2030, result in the industry producing 15 times the amount of plastic waste it now generates.

The Government proposes introducing the charge under the Circular Economy Act, passed last year, which allows for levies on single-use packaging. “The international evidence in support of a levy on single-use cups is not compelling and does suggest that it is not an appropriate course to pursue,” his report says.

Based on a survey that he carried out of 2,226 coffee shops, Mr Power calculates that replacing disposable cups with reusable alternatives would cost the entire industry €492 million.

 

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