The Plastic Packaging Tax (PPT) is a new environmental tax coming into effect on 1st April 2022 to encourage the use of recycled rather than new plastic in plastic packaging and support the UK’s move towards a circular economy.
Who will it apply to?
Businesses that manufacture or import 10 or more tonnes of plastic packaging over a 12-month period will need to register for the tax. Businesses who manufacture and/or import less than this are exempt from PPT but are still obliged to keep records of the packaging they manufacture or import.
Every manufacturer and importer of plastic packaging must therefore keep records of the packaging they manufacture or import, even if they are not required to register or pay the Plastic Packaging Tax so they can prove that their organisation is exempt.
What will be taxed?
The tax applies to plastic packaging manufactured or imported into the UK that does not contain at least 30% of recycled plastic, including filled and unfilled. The rate of tax will be £200 per metric tonne (1,000 kg) of plastic packaging. Examples of plastic packaging items that could be subject to the tax:
- bottles (e.g. for soft drinks, cleaning, or cosmetic products);
- trays or film used to contain or protect goods, (e.g. ready meal trays);
- single-use bags, (e.g. carrier bags); or
- pots or crates designed to handle and deliver products, (e.g. yoghurt pots, fruit or vegetable crates).
What should I do next?
If you think you might be affected by this tax you should visit: www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax
