The UK Government’s new Plastic Packaging Tax is due for implementation in April 2022 and will apply to any packaging which is predominantly plastic by weight. The aim of the tax will be to encourage importers and manufacturers of plastic packaging in the UK to include more than 30% of recycled content in their products. Businesses will need to handle more than 10 tonnes of plastic packaging to be required to pay the tax.
There will be a £200 per tonne value on plastic packaging with less than 30% recycled content. Plastic packaging manufacturers who produce products that are liable to the tax, will either need to absorb the cost or pass part, or all of it, to their customers.
The good news for PFF’s customers is that our rPET product will be exempt from the tax as it contains up to 90% recycled material, over 50% of which is post-consumer waste. Plus, with the majority of our desto product being comprised of card, it will also be exempt.
Buyers of these products can look forward to seeing no impact on prices, resulting from the implementation of the new tax, in 2022.
We are very pleased to share this positive news with you, as the UK begins to move forward from the impact of the Coronavirus and looks towards the better times ahead for us all.
FOOTNOTE: 28th April 2020 – the UK Government has announced an extension of the consultation period for the proposed tax, from May to 20th August 2020.