The UK’s new Plastic Packaging Tax (PPT) is on its way… 07/02/22

Are you ready for the Plastic Packaging Tax (PPT)? If not, it’s something you need to have on your radar. 

What is PPT? 

From 1 April 2022, the UK will introduce a green tax on plastic packaging – the Plastic Packaging Tax (PPT). The tax will apply to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. It will be applied at a rate of £200 per metric tonne of the chargeable plastic packaging. 

Why is PPT being introduced? 

The aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging. It’s hoped this will create greater demand for recycled plastic, which will in turn stimulate increased levels of recycling and collection of plastic waste. 

The government estimates that the tax could result in a 40% increase in the use of recycled plastic in packaging. That’s equivalent to carbon savings of nearly 200,000 tonnes in 2022 and 2023 based on current carbon factors. 

Who is PPT going to affect? 

Any business that imports plastic packaging into the UK – or products contained in plastic packaging – will need to register for PPT. This also applies to manufacturers of plastic packaging in the UK, but credits will be available for exported packaging including on packed goods. 

Registration for PPT is required even if a business meets the 30% recycled content threshold and does not need to pay any tax. 

An exemption does however exist for manufacturers and importers of less than 10 tonnes of plastic packaging per year.  

What preparations need to be made for PPT? 

It’s essential that importers and manufacturers start to consider the systems and processes they need to collate data that will drive compliance with the new tax. An assessment of the likely impact of PPT on a business and its supply chain should also be carried out. Crucially, importers and manufacturers must make sure they’re registered for the tax. More in-depth details are available on the gov.uk website. It should be noted that if tax returns – required quarterly – are not submitted on time, penalties may be charged. What’s more, late payments will be subject to interest. 

In order to ensure you have the information you need to prepare fully, we’ll be releasing more information around PPT in the coming weeks.