Latte Levy: Consultation on draft regulations seeks retailer views
Consultation will remain open until 25 November 2022
Print19 October 2022
Retailers who sell hot drinks in disposable cups have beeen asked to give their views on the government’s plans to introduce the ‘latte lavy’; an environmental levy on single-use cups for hot drinks to incentivise people to choose to re-use and to help reduce single-use waste.
The target date for the making of the levy regulations is December 2022. At least three months will be provided to allow appropriate preparation and transitional arrangements to be made before the levy is applied.
This consultation has three strands – public consultation, retailer consultation and other stakeholder engagement – and will be open for a period of six weeks, closing at 5.30pm on 25 November 2022.
Under the new regulations:
- Customers who purchase their hot drink in a single-use disposable cup will be charged the levy at the point of sale. Customers who choose to purchase their hot drink in a reusable cup will not be charged the levy. Many have already made this switch and many cafes and shops have been incentivising the use of reusable cups by providing a discount when you bring your own cup
- The proposed levy will be charged at a flat rate of 20 cent, applicable to all single-use disposable cups containing a hot drink, including those described as compostable, biodegradable or recyclable. Compostable, biodegradable or recyclable cups are single-use, and the overall aim is to move away from single use towards reuse. These cups do not minimise the use of resources and if not disposed of correctly, add to waste for disposal
- The levy will be shown as a separate charge on the invoice/receipt
- The proceeds from the levy will be ringfenced in a Circular Economy Fund for projects relating to environmental and climate action objectives and will be administered by the Department. The specific types of projects which can be funded through this Fund are set out in Section 8 of the Circular Economy Act
- All businesses / traders who sell hot drinks in single-use disposable cups will be required to register for the levy with the Collection Authority, when appointed. Guidance, like that provided for the plastic bag levy, will be made available to retailers in due course
Retailer Consultation
The retailer strand of the consultation is targeted at businesses or traders who will be directly impacted by the regulations. This includes retailers or other traders who sell hot drinks in disposable cups.
You can submit your views on the levy through a short survey which can be completed anonymously online. It is not necessary to answer all questions, additional comments are also welcome.
To fill in the survey, click here: Survey for Retailers
RGDATA, which represents independent retailers, also plans to make a submission on the proposed plans.
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