UK PACKAGING
Government being urged to spell out plans for tax revenues raised by plastic packaging levy
The UK plastic packaging tax was introduced on 1 April 2022 (Photo: PIE)
The UK government is being urged to reveal its plans for the GBP 270 mn (EUR 307 mn) that it is expected to collect via the plastic packaging tax (PPT) in the current financial year.

A Freedom of Information request, lodged by British packaging manufacturer Duo (Manchester; www.duo-uk.co.uk), revealed the PPT generated a total of GBP 135.8 mn in the six months following its introduction on 1 April 2022.

Under the new legislation, a levy of GBP 200 is applied to every tonne of plastic packaging that does not contain at least 30% recycled plastic. In the first six months of the new system, some 679,143 t of plastic packaging have been liable for the tax, while 1.1 mn t were exempt from the PPT, suggesting approximately 63% of declared plastic packaging during this time contained at least 30% recycled plastic content.

Related: UK firms ‘still in the dark’ over plastic packaging tax

The UK government had predicted the PPT would raise around GBP 235 mn, but Duo director Zoe Brimelow believes trends during the first six months of the tax suggest the estimated first-year PPT revenues will exceed GBP 270 mn.

“There have been two tax-return periods so far, with relatively small variances in the reporting and packaging usage across both. The second period from July to September saw around 70,000 t less in the overall volume of declared plastic packaging, compared with April to June.

“Taking these numbers into account, it’s clear that the tax has been successful in creating greater demand for recycled plastic packaging and has generated a huge amount of money.”

Brimelow said businesses that had invested in compliance to pay the tax or invested heavily in new equipment and processes “should be informed about how hundreds of millions in new revenues will be used”.
11.01.2023 Plasteurope.com [251862-0]
Published on 11.01.2023

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Date of print: 02.02.2023 18:03:20   (Ref: 488955873)
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