That’s a Wrap: One year of the Plastic Packaging Tax

What is the Plastic Packaging Tax?

The UK is currently one of three countries to lead in initiatives to encourage more recycled or recyclable content in packaging to tackle plastic waste. The tax applies to plastic packaging manufactured in or imported into the UK containing less than 30% recycled content. Businesses that manufacture or import less than 10 tonnes of plastic packaging over 12 months are exempt from paying the tax.

Success in numbers

In an HMRC policy paper, the tax was estimated to generate £235 million in its first year, which received some criticism when only 3559 companies signed up of the 20,000 it was expected to affect. However, in December 2022, over £200 million in revenue was calculated, with a projected £266 million by the last quarter.

Changes for 2023

The tax rate for 2022 was £200 per tonne. Currently, as of April 2023, the rate stands at £210.82 per tonne. Businesses must register for the tax if they will manufacture or import 10 tonnes of plastic packaging in the next 30 days, or if they already have in the last 30 days. Businesses are liable to register if they fall within the bracket.

What’s next?

Whilst the main aim of the plastic packaging tax is to encourage the use of recycled plastic content, it also acts as an incentive for businesses to try alternative, more sustainable packaging options and thus building the market and the demand for them.

It is emphasised that the environmental results of the tax will be gradual. It will play its part alongside the up-and-coming initiatives such as the Deposit Return Scheme and Extended Producer Responsibility in reducing plastics in landfill and reducing carbon emissions. If successful, we can expect to see a much greener future for packaging in the UK. To find out more about the Plastic Packaging Tax and how to navigate it, head to our Hub.