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UK Plastic Packaging Tax PPT: What is it, who needs to pay and how much?

(S,P) From 1 April 2022, are you ready to pay the Plastic Packaging Tax?


UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK will be required to pay a tax.



What is it about?

This is a new tax that will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. Plastic packaging is packaging that is predominantly plastic by weight. It will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight.


What about imported plastic packaging?

Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.


Why add another tax?

The aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn, this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfills or incineration.


Finished plastic packaging components

If you have manufactured or imported 10 tonnes or more of finished plastic packaging components within the last 12 months, or you will do so in the next 30 days, you are required to register with the authorities. You must register for Plastic Packaging Tax within 30 days of becoming liable to do so, and you will need to pay the tax on all components on which it is due from the day that you become liable to register.


Foreign Traders, too

This includes non-resident taxpayers who import finished plastic packaging into the UK on their own behalf or manufacture finished plastic packaging in the UK.


Exemptions

To mitigate against disproportionate administrative burdens in comparison to the tax liability for those who are likely affected, there will be an exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.


How much is PPT?


The rate of PPT will be £200 per metric tonne of plastic packaging (that contains less than 30% of recycled plastic).


Who will pay PPT?


PPT will be charged from 1 April 2022 and potentially, everybody, from the largest plastic packaging manufacturer to the corner shop customer buying a packet of pasta, will see its effects.


Although PPT will be levied on manufacturers and importers (both UK resident and non-UK residents) that manufacture (or import) ten metric tonnes of plastic packaging or more annually, the cost may well be passed along the supply chain to the end-consumers.


Check which plastic packaging is exempt from Plastic Packaging Tax

Check which plastic packaging is exempt from Plastic Packaging Tax - GOV.UK
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Work out which packaging is subject to Plastic Packaging Tax

Work out which packaging is subject to Plastic Packaging Tax - GOV.UK
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Download PDF • 141KB

Examples of packaging in and out of scope of Plastic Packaging Tax

Check which plastic packaging components are chargeable for Plastic Packaging Tax.


Packaging in and out of scope of Plastic Packaging Tax - GOV.UK
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Download PDF • 191KB

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