Environmental taxation and the implementation of the polluters pays

This chapter deals with matters of interest which arise from theinterrelation between environmental policy pursued at the EU level andexploitation of the tax function which pushes economic operators tomake more eco-friendly products for the Single Market. In this regard,the ‘Polluter Pays Principle’ as enshrined in Arts 191-193, TFEUplays a fundamental and guiding role. The complete understanding ofhow and to what extent the principle interacts with the fundamentalfreedoms of EU law, and especially with State Aid legislation, acquiresa crucial centrality. The chapter then provides a critical assessmentof the observance of the ability-to-pay principle in environmentaltaxation and offers a quick overview of the recent adoption of the socalled‘EU plastic tax’, in terms of consistency or discontinuity withprevious experience of environmental taxation.