PPA Blog

Plastic Packaging Tax: Updated guidance from Government

By Sorcha Mondon

22 Sep 2021

The Government have given more information on the Plastic Packaging Tax which is to be implemented in April 2022.

The Government have released their first policy paper on the Plastic Packaging Tax which is to come into force in April of next year. Though the paper gives some new guidance, it is subject to minor changes in the interim.

The main purpose of the Plastic Packaging Tax is to encourage the use of recycled plastic packaging, and move away from the production of new plastic. This in turn should stimulate increased levels of recycling, diverting the non-biodegradable material from landfill.

So, who will this new tax apply to?

The tax will apply to plastic packaging manufactured or imported into the UK where the plastic used in its manufacture is less than 30% recycled. The rate of this tax will be £200 per metric tonne. There will be an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.

Whilst business customers of manufacturers will not have to pay the tax themselves, there could be a knock-on effect in terms of pricing. It may be helpful to discuss the tax and its impact with suppliers and manufacturers.

Business liable for the tax will have to keep records and register for the tax: you can find more information about registering here.

We recommend a read through the Government's in depth advice on the Plastic Packaging Tax. There is also a helpful document on more specific information for businesses that can be found here.

PPA has recently responded to a DEFRA consultation concerning the introduction of uniform residential council recycling collections, including the collections of plastic films. We are pushing Government to require these collections as soon as possible, allowing publishers to create an even more sustainable product with a greater proportion of recycled materials.

If you have any queries about the content of this guidance, email indirecttaxdesign.team@hmrc.gov.uk , or contact the PPA Public Affairs team: sebastian.cuttill@ppa.co.uk

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