UK to Levy Tax on Plastic Packaging

As per estimates, plastic packaging accounts for 44% of plastic used in the UK.

SEATTLE (Scrap Monster): The UK plans to introduce tax on plastic packaging within the next two years. The government has published a draft primary legislation for technical consultation. The country had carried out a consultation process last year. Starting April 2022, plastic packaging that fail to satisfy minimum 30% recycled content will be charged at the rate of Euro 220 per tonne.

According to government release, the new tax will be applicable to all packaging that is predominantly plastic by weight, either produced within the UK or imported into the country. Imported plastic packaging, whether filled or unfilled, will be liable to the tax. It will not be applicable to packaging that is not predominantly plastic by weight. Initially, the tax will be levied only on businesses that consume plastic packaging in excess of 10 tonnes per annum. The move to implement tax is likely to impact around 20,000 producers and importers.

New Plastics Packaging Tax to Boost Circular Economy

The policy aims to provide a clear economic incentive for businesses to use recycled material in the production of plastic packaging. Furthermore, it will help to stimulate increased levels of recycling and collection of plastic waste.

The tax plan is unlikely to have any significant macroeconomic impacts. It will generate revenue of Eur 240 million in the first year of implementation.

As per estimates, plastic packaging accounts for 44% of plastic used in the UK.