PONT helps you to understand the incoming UK Plastic Packaging Tax

You may have heard about the incoming UK Plastic Packaging Tax (PPT) that is set to be introduced in April 2022. For the vast majority of our customers, UK Plastic Packaging Tax will be relevant. The rule is that all plastic packaging with less than 30% recycled content will be subject to an additional tax of £200 per metric ton of packaging.

UK Plastic Packaging Tax (PPT), what is it?

A UK Plastic Packaging Tax of £200 per ton for all plastic packaging with less than 30% recycled material manufactured or imported into the UK, empty or filled

Who is affected by the Tax?

UK manufacturers, importers, business customers; anyone creating or using more than 10 tons of plastic packaging per year

When does it start?

1st April 2022

What is the legislation?

Part 2 of the Finance Act 2021, enforced by HMRC

How much does it cost?

£200/ton of virgin plastic

Is any plastic packaging exempt?

1. Immediate packaging of a medicinal product
2. Transport packaging used on imported goods
3. Packaging used as aircraft, ship, rail stores
4. Components permanently designated or set aside for use other than packaging purposes
5. Deferral of liability to the tax for exported plastic packaging

What is the reason of the tax?

The UK PPT is an economic incentive for businesses to use recycled plastic, and to create greater demand for recycled material to boost recycling and collection. And reduce plastic waste.

The expectation is that recycled plastic in packaging could increase by around 40%, equal to carbon emission savings of nearly 200,000 tons in 2022 – 2023.

Pont PAckaging is prepared for the future of plastic tax coming in 2022!

The PONT team is here to help you understand this new tax and to ensure that your packaging is appealing to your customers and sustainable. To stay ahead of the expected PPT paperwork and reduce issues related to liability, we can work with you to ensure your packaging contains at least 30% recycled content.

More plastic tax information

Official paperwork will be required to prove that the PPT has been paid for any plastic packaging that does not contain a minimum of 30% recycled content (e.g recycled PET(rPET)), with failure to register or pay the PPT likely resulting in a penalty, so many brands are looking at their current packaging to see if it complies – and to responsibly avoid the tax.

Be aware that the declaration will have to be fulfilled even if you use plastic packaging containing 30% of recycled packaging.

While there are questions surrounding the specific implementation of the PPT, such as potential mitigation with reduced plastic and downgauging, early adapting is key.

PONT is well-positioned to support our customers in navigating this tax as our portfolio is already established with up to 100% rPET products across the range, and the ability to produce all our plastic packaging with at least 30% recycled content for quick delivery to you across the UK.

Of course, staying ahead of and in line with the upcoming UK Plastic Packaging Tax is not simply an exercise in meeting legislation. The drive to implement greater volumes of recycled content into standard consumer packaging makes it clear that sustainability is no longer a nice to have, but rather the responsibility of us all.

Still a bit unsure about the new UK plastic tax?

Feel free to contact us below to request advice on the new plastic tax coming into effect April next year, we are also able to offer support and help for your business so all operations continue to function efficiently throughout the tax changes.

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