Plastic Packaging Tax (PPT)

Are you ready for the plastic packaging tax?

What is Plastic Packaging Tax?

The Plastic Packaging Tax is a UK government initiative to promote the use of recycled content in plastic packaging. It’s designed to reduce the volume of single-use plastic waste, encouraging businesses to integrate sustainable practices into their operations.

In April 2022, the UK introduced the Plastic Packaging Tax, imposing a £210.82 per metric tonne charge on plastic packaging with less than 30% recycled material.

HMRC enforces this tax, which is separate from existing waste regulations. It aims to encourage the use of recycled content in packaging.

The introduction of this tax reinforces the UK government’s dedication to environmental sustainability. By pushing companies towards using more recycled content, the demand for new plastic reduces, promoting a greener, more sustainable packaging industry.

What is PCR content?

Recycled content in plastic packaging isn’t just a trend – it’s a commitment to our environment, future generations, and responsible business practices.

The ‘recycled content’ in plastic packaging components must originate from one of two sources.

Post-consumer waste: Includes plastic waste from households, commercial, industrial, or institutional facilities after it can no longer serve its original purpose.
Pre-consumer waste: This involves plastic waste recovered from manufacturing processes and processed by re-processing facilities, excluding process scrap reintroduced into extrusion machines during production.

Benefits of Using Recycled Content

Environmental Impact: Less reliance on virgin plastics conserves resources and decreases greenhouse gas emissions.
Reduced Waste: Leveraging recycled materials ensures less plastic ends up in landfills and our oceans.
Consumer Approval: Modern consumers are more conscious than ever, often choosing brands committed to sustainability.

Tax Rate:

Businesses that produce or import plastic packaging that does not contain at least 30% recycled content will be charged a tax rate of £210.82 per metric ton.

Who It Applies To:

The tax applies to businesses that produce or import plastic packaging. The tax covers all plastic packaging produced in or imported into the UK, irrespective of whether the packaging is used in the UK or exported.

Threshold

Businesses that produce or import less than 10 metric tons of plastic packaging annually are exempted from the tax.

Packaging Subject to PPT

The tax covers all plastic packaging produced in or imported into the UK. For multiple materials which has a higher weight percentage of plastic than any other single substance that will be considered a plastic packaging component.

Recycled Content:

Plastic packaging with 30% or more recycled content is exempt from the tax.

Exemptions:

Used for the immediate packaging of licensed human medicine
Permanently recorded as set aside for non-packaging use
Used as transport packaging to import multiple goods safely into the UK
Used in aircraft, ship and rail goods stores