Plastic Packaging Tax (PPT)

Policy Objectives.

Why This Tax?

The Plastic Packaging Tax will provide a clear economic incentive for businesses to use recycled material in the production of plastic packaging, which will create greater demand for this material and in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.

The Details And The Key Dates.

How Much Is This Tax.

£200 per tonne tax rate for packaging with less than 30% recycled plastic imported to or produced in the UK.

Who pays the Tax.

The UK producer or UK importer who produces and/or imports more than 10 tonnes of plastic packaging per year.  It is a one time tax and if you buy from a UK importer or UK Manufacturer they are obligated to have already paid the tax. Small operators who import or manufacture less than 10 tonnes of plastic packaging per year will be exempt from paying the tax. Once a business meets the 10 tonnes de minimis, it must register with HMRC. All businesses will be required to report plastic packaging data and pay tax on applicable volumes quarterly.

General Description.

This is a new tax that applies to plastic packaging produced 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.
The government will be holding a consultation on the design and implementation of the tax, which will be launched alongside Budget.

Key Dates.

At Budget 2017, the government announced a call for evidence into using the tax system or charges to tackle single-use plastic waste and received 162,000 responses.

At Budget 2018, a new tax on plastic packaging with less than 30% recycled plastic was announced. The government launched a consultation in February 2019 seeking input on the initial proposals for the design of the tax. A summary of responses was published in July 2019.

The tax will take effect from 1st April 2022.

What Products Will Be Affected.

A component must meet the following definition of ‘packaging’ to be liable for the tax:

“Is a product that is designed to be suitable for use, whether alone or in combination with other products, in the containment, protection, handling, delivery or presentation of goods at any stage in the supply chain of the goods, from the producer of the goods to the consumer or user.”

This definition captures consumer goods, such as cling film, bin bags and party cups, in addition to plastic packaging components to contain food, goods and transport of multiple items.

Plastic includes bioplastics, including biodegradable, compostable and oxo-degradable plastics.

Understanding the four types of recycled plastic allowable as recycled content in packaging.

Recycled plastic

Recycled plastic is plastic that has been reprocessed from recovered material, by using a chemical or manufacturing process, so that it can be used either for its original purpose or for other purposes. This does not include organic recycling.

Recovered material

Recovered material is pre-consumer plastic or post-consumer plastic that has been collected and recovered as a material input, instead of new primary material, for a recycling or manufacturing process. It would otherwise have been disposed of as waste or used for energy recovery.

Pre-consumer plastic

Pre-consumer plastic is plastic that is recovered from waste generated in a manufacturing process and processed by a reprocessing facility. It does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.

Post-consumer plastic

Post-consumer plastic is plastic that is generated by households or commercial, industrial or institutional facilities in their role as end user of the product that can no longer be used for its intended purpose. This includes returns of materials from the distribution chain.