Plastic Packaging Tax

Effective 1st April 2022. What is it and how does affect you?

Plastic Packaging Tax | Implemented 1st April 2022

As of today this new tax will be applied to qualifying items manufactured in or imported into the UK. Whilst the Plastic Industry has been preparing for the new requirements for months, according to research conducted by Veolia, over 75% of British retail and manufacturing businesses are still unaware of the impending Plastic Packaging Tax. With much more prominent news stories covering global events, this is unlikely to change at any time soon and it may be that increased prices are mistaken for 'just another increase' during this turbulent time. The reach of this new regulation goes way beyond plastic food packaging and shrink wrap, read our guide below;

What is Plastic Packaging Tax?

At it's core, this new tax is aimed at increasing the use of recycled material and reducing the amount of virgin material being used to manufacture plastic parts. Items made using a minimum of 30% recycled material are exempt from the tax so there will be pressure on manufacturers and raw material suppliers to meet this target where possible.

Which items are eligible?

Plastic items that are suitable for 'use in the supply chain' or 'single use by the consumer' which covers a wide range of products and uses. For the purposes of Plastic Packaging Tax, plastic means a polymer material to which additives or substances may have been added. Where it can be demonstrated that the items have been produced using a minimum of 30% recycled material, Plastic Packaging Tax does not apply. Applicable items are packaging that is designed for use in the supply chain, doing one or more of the following;

  • Contain the goods
  • Protect the goods
  • Handle the goods
  • Present the goods
  • Deliver the goods


Who registers and pays the Tax?

As the manufacturer or importer, Sinclair & Rush will pay Plastic Packaging Tax. For your convenience, we have added a surcharge of 2.5% to all items within qualifying categories. There will need to be a statement to the effect that the tax has been settled on all applicable invoices. Plastic Packaging Tax is only paid once when the packaging component is finished or imported. It is not passed down the supply chain as a separately identifiable charge like VAT. 

Mark Osborn, Managing Director of Sinclair & Rush Ltd 

"We have worked hard behind the scenes over the past months to be ready for this new requirement. Using every last gram of raw material possible has always been standard practise for all S&R sites, we grind and then re-pelletise waste material to introduce back into our Extrusion Lines. We embrace the good intentions of this new Regulation and will continue to work with our Raw Material suppliers to produce more of our range with the necessary 30% recycled content."

Please view Government site for further information, content of this article has been sourced from the pages below;



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