German town's tax on disposable packaging upheld at high court

Germany's Constitutional Court has upheld a special tax on disposable food and drink packaging levied by the small university city of Tübingen, rejecting a lawsuit brought by a local McDonald's fast food franchise.

The McDonald's franchise owner had argued that the tax, which applies to products like disposable paper cups, cutlery and straws, violated protections for freedom of business that are enshrined in Germany's constitution, known as the Basic Law.

Tübingen, located in south-western Germany, passed the tax in an effort to cut down on waste and litter in public spaces.

The Constitutional Court in Karlsruhe on Wednesday ruled that although the tax did infringe on business freedoms, that interference is justified and constitutional.

The court cited the city's power over local taxation.

Tübingen's packaging tax has been in force since the beginning of 2022.

Under the tax, the city charges €0.50 ($0.52) for packing such as disposable coffee cups and trays and €0.20 for cutlery and items such as straws.