PLASTIC PACKAGING TAX (PPT)

A new tax on plastic packaging comes in to force in the UK from 1 April 2022. It applies to all plastic packaging manufactured in, or imported into the UK that does not contain at least 30% recycled plastic.

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The rate of tax which is payable, on a quarterly basis, is £200 per tonne of any plastic packaging which falls within the above criteria.

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Manufacturers or importers of plastic packaging, including importers of packaging which already contains goods, need to ensure they comply with the tax.

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PPT is an environmental tax, the aim of which is to provide a financial incentive for businesses to use more recycled plastic in the manufacture of plastic packaging. The government envisages this will in turn lead to a greater demand for recycled plastic, which will then increase the levels of plastic waste recycling.

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Registration for PPT will be required if a business:

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• Expects to import into the UK or manufacture in the UK, 10 tonnes or more of finished plastic packaging components in the next 30 days or;

• Has imported into the UK or manufactured in the UK 10 tonnes or more of finished plastic packaging components since 1 April 2022 - this will change on 31 March 2023, when businesses will need to look back over the last 12 months on the last day of each month.

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Comment

The criteria for deciding, for example, what packaging falls within the tax, the plastic content of a certain type of packaging or if there are any exemptions applicable are extremely complicated and any errors can lead to incorrect or overpayment of the tax due.