Are you ready for the Plastic Packaging Tax?
Looking ahead to next year (already!) from 1st April 2022 a Plastic Packaging Tax will come into force.
The aim of this new tax is to encourage the use of recycled rather than new plastic within plastic packaging. The government have announced that the rate of tax will be set initially at £200 per tonne of plastic packaging that does not contain at least 30% recycled plastic.
Affecting UK producers of plastic packaging, importers of plastic packaging, business customers of producers and importers of plastic packaging, the tax will provide a clear economic incentive for businesses to use recycled material in the production of plastic packaging. The aim is to 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.
There will be an exemption for producers and importers of small amounts of plastic packaging to mitigate against disproportionate administrative burdens in comparison to the tax liability.
Environmental groups have welcomed the news of this new tax, which they hope will see a reduction in harmful plastics appearing in oceans and other natural environments over the next decade.
The details of this new tax were shaped by several public consultations during the last 24 months and will be legislated for in the 2021 Finance Bill. You can read a draft of the bill here.