This new tax, which came into force in April 2022, affects:
UK manufacturers of plastic packaging
Importers of plastic packaging
NOTE: Costs may be passed through the supply chain.
The tax applies to plastic packaging produced in, or imported into, the UK, that does not contain at least 30% recycled plastic, from April 2022.
The tax applies to plastic packaging on a per component basis. Multi-material components will be classed as plastic packaging if they are predominantly plastic by weight.
Exported primary and secondary packaging will be relieved. Imported transport / tertiary packaging is exempt. All reusable transport / tertiary packaging in circulation prior to the April 2022 implementation of the tax is exempt.
Plastic packaging with less than 30% recycled content will be taxed at £200/tonne. From 1 April 2023, the tax rate will increase to £210.82 per tonne.
All liable packaging will be taxed at the applicable rate per tonne unless liable businesses can provide valid evidence that the packaging in question contains sufficient recycled content.