Plastic Packaging Tax: Everything you need to know

What is the new plastic packaging tax?

From 1 April 2022, the UK government will introduce a plastic packaging tax on all plastic packaging items that do not contain at least 30% recycled material.

The tax applies to plastic packaging produced in or imported into the UK.

What products are likely to be affected?

The HMRC has outlined a list of products which will be chargeable for the tax. This includes packaging designed for use in the supply chain and single use consumer packaging.

Packaging that contains at least 30% recycled plastic will be exempt from the tax. Packaging which is not predominantly plastic by weight will also be exempt.

Why is it being introduced?

The tax is being introduced by the government to create an incentive for businesses to use recycled plastic in the manufacture of plastic packaging.

In turn, it will boost recycling and divert waste away from landfill or incineration.

How much is the tax?

The plastic packaging tax will be £200 per tonne of packaging with less than 30% recycled plastic.

Who will have to pay?

The tax will apply to all plastic packaging manufactured or imported and placed on the UK market, alongside transport packaging used in the export of these goods.

The tax will be paid by the person or business who produces the finished plastic product(s) or the importer of the finished product(s).

It is up to the person, business, or importer, to decide whether they want to pass the charges on to the buyer.

For more information on the legislation, click here.