How will The Plastic Packaging Tax affect businesses?

The UK government is introducing a new Plastic Packaging Tax (PPT) on the 1st April 2022.

This means that there will be a tax rate of £200 per tonne. If you've manufactured or imported 10 or more tonnes within the last 12 months, or plan to within the next 30 days, you need to register for the PPT. From 1st April 2022 to 30th March 2023, the 12 month threshold will be worked out differently.

Manufacturers and importers of plastic packaging which contains less than 30% recycled plastic are whom the Plastic Packaging Tax applies to, and the packaging should only contain recycled plastic where permitted under regulations and Food Safety Standards.

You can find out how to register from the GOV.UK website.

Exemptions from the Tax

HMRC have since reclassified farmers silage wrap as exempt from the Plastic Packaging Tax, after the industry intervened on the grounds of it being a highly specialised product which enables the fermentation process. The tax was labelled as "seriously damaging" to farmers, who are already facing spiralling costs and overseas competition.

There are now calls for pan liners to be exempt from the tax by the Foodservice Packaging Association (FPA) and the Hospitality/Catering industry. Pan liners are widely used in commercial kitchens to ensure longer life, saving water and energy, and reduce time spent on cleaning.