March 9, 2021
This new tax will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight.
It will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight. Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.
Who is likely to be affected
UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK.
To mitigate against disproportionate administrative burdens in comparison to the tax liability for those who are likely affected, there will be an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.
Policy objective
The tax aims to provide a clear economic incentive for businesses to use recycled material in the manufacture of plastic packaging, which will create greater demand for this material. In turn, says the government, this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.
The tax will take effect from 1 April 2022.
This is valid as of 9th March 2021.
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