Plastic Packaging Tax will be a tax on plastic packaging (including in some instances, plastic and rubber parts) manufactured in, or imported into the UK, where the plastic used in its manufacture contains less than 30% recycled plastic. Where 30% or more recycled plastic is used, no tax will be due, but the plastic packaging will still need to be accounted for. The tax will come into effect from 1 April 2022. The rate of tax will be £200 per metric tonne of plastic packaging.
The aim is to reduce the amount of single use plastics and also the production of goods made from 100% virgin material. This will focus the industry on innovating and providing new solutions. We are currently working hard in preparing for the roll out on 1st April.
Introducing a 30% content of recycled material will be more challenging for some categories than others and there will be a transition period as we trial alternatives. Higher recycled content may mean less control and consistency so there will be a continuing R&D and consultation with our customers on this subject. Ultimately, there will be some items that will qualify for the new tax for the foreseeable future, so this will be addressed on a case-by-case basis.
As a responsible Manufacturer and Global leader in the industry, our main priority is the ethical continuity of supply to our customers.