Plastic Packaging Tax has been put in place by HMRC to encourage the usage of recycled material in plastic packaging in the UK. All eligible businesses will be liable to pay £200 per tonne on plastic packaging on the market with less than 30% recycled plastic content.
Companies that handle more than 10 tonnes of plastic packaging. The tax is payable on all plastic packaging with less than 30% recycled content. (Not applied to packaging that is not predominately plastic by weight).
Those likely to pay the tax are: Importers of finished goods, importers of empty packaging, plastic packaging manufacturers. Costs of products will increase for businesses selling plastic packaging, consumers, waste management companies.
Each component is considered a separate entity and is classed as being “separable by hand”. Packaging that contains multiple materials but contains more plastic by weight than any other single substance will be a plastic packaging component for the purposes of the tax. For example, if a 10-gram item of packaging is made up of four grams of plastic, three grams of aluminium and three grams of cardboard, all 10 grams will be considered plastic packaging for the purposes of the tax.