UK Plastic Packaging Tax

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.

If you think your business may be affected by the Plastic Packaging Tax, it is important to act now:

• Use our Plastic Packaging Tax Liability Calculator for an indicative cost forecast
• Understand the composition of your plastic packaging down to component level
• Collect and reconcile data relating to the amount of recycled content in each component
• Identify opportunities to increase the amount of recycled content to the 30% level

Taking these steps will help to reduce the financial impact of the Plastic Packaging Tax on your business.

The UK Plastic Packaging Tax is only one aspect of the legislation proposed under the packaging reform. Visit our Deposit Return Systems and Extended Producer Responsibility pages for further information.

Our 25 years’ experience means we have the data knowledge and systems in place to help you with all of the actions above, and we can provide you with a clear view of your business’s product and supplier data. We will also help you to engage with your suppliers.

Our Data Insights Platform offers visibility of all packaging handled within your business, making this data easy to digest and analyse. It will enable you to quickly identify which plastic materials contain less than 30% recycled content, so you can make changes and avoid a significant financial burden.