Plastic Packaging Tax (PPT)

Are you ready for the plastic packaging tax?

What is Plastic Packaging Tax?

In April 2022, the UK government introduced the Plastic Packaging Tax (PPT) to encourage the use of recycled materials and reduce single-use plastic waste.

This tax applies to plastic packaging components with less than 30% recycled content. Businesses must pay £210.82 per metric tonne for these components. The tax is managed by HM Revenue and Customs (HMRC) and works alongside, but separately from, existing waste regulations.

The Plastic Packaging Tax highlights the UK government’s commitment to environmental sustainability. By encouraging businesses to use more recycled content, the tax helps decrease the demand for new plastic. This shift supports a greener and 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: Includes plastic waste recovered from manufacturing processes and processed at re-processing facilities. However, it excludes process scrap that is directly reintroduced into extrusion machines during production.

Benefits of Using Recycled Content

Environmental Impact: It lowers the need for virgin plastics, helping to conserve resources and cut greenhouse gas emissions.
Reduced Waste: Less plastic waste ends up in landfills and oceans, contributing to a cleaner environment.
Consumer Approval: It attracts eco-conscious consumers who value 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 in the UK. It covers all plastic packaging, regardless of whether it is used domestically 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 applies to all plastic packaging produced or imported into the UK. Moreover, when packaging contains multiple materials, the component with the highest weight percentage of plastic, compared to any other material, qualifies as 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