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What The Plastic Packaging Tax Means For Businesses

What The Plastic Packaging Tax Means For Businesses

More and more people are cracking down on the amount of plastic they and their business are using and consumer demand is skyrocketing for plastic-free packaging. It was only a matter of time before something a bit more official was put in place to encourage and incentivise more sustainable packaging choices in the UK, and it’s here: the Plastic Packaging Tax.

So, what is the plastic packaging tax?

Announced in early March 2020, the Plastic Packaging Tax will apply to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic. The British government hopes the plastic packaging tax will “provide a clear economic incentive for businesses to use recycled material in plastic packaging” and believe it will “stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.” Sounds pretty good in theory.

Households across the UK would welcome better at-home plastic packaging recycling with open arms – currently three quarters of local authorities do not accept any plastic packaging recycling other than bottles. But, with significantly higher demand at the manufacturing stage for recycled plastic so they can make new packaging, it’ll only be a matter of time before more councils accept more forms of plastic.

What packaging will be affected?

All packaging classed as plastic with lower than 30% recycled content will be liable to this tax, whether the packaging is filled or not. Any packaging which is not predominantly plastic by weight will not be taxed.

How much will the tax be?

The tax rate has initially been set as £200 per tonne of plastic packaging. There are consultations throughout the new financial year where this will be discussed, so this figure may change.

When will it take effect?

Whilst the new Plastic Packaging Tax was announced this year, we won’t be seeing it in action until 2022 as it’s only fair to give manufacturers a chance to get the right solutions in place before mass producing packaging which doesn’t do the job. 

Our verdict

The Plastic Packaging Tax is definitely a step in the right direction towards an eco-friendlier future. By any means it won’t stop new plastic being created from raw materials; 70% of the packaging product can be made using new resources even under these guidelines, and if you don’t comply, a £200 per tonne tax isn’t exactly a huge deterrent. With that being said, as more manufacturers turn to using recycled materials and they realise the benefits of doing so, I believe the actual recycled content of future plastic packaging will be much higher than just 30%. Everyone has to start somewhere, and this certainly isn’t a bad place to begin.