Plastic Tax: Understanding The Cost Of Environmental Damage

Plastic packaging tax, also known as PPT, is a government tax on the production or import of plastic with less than 30% recycled content. The tax is designed to minimise plastic waste and encourage investment in recycling. It came into force in the UK on 1 April 2022, and applies to any business that imports or manufactures plastic packaging in the UK, or is involved in the supply chain. The tax rate is £200 per metric tonne of plastic material used, or 20p per kilo.

The plastic tax is 20p per kilo (£200 per tonne)

The tax came into force in the UK on 1 April 2022, with a rate of £210.82/tonne for the 2023 tax year. It is also being implemented in other countries, such as Spain and Italy. In Spain, the tax is charged at 0.45€ per kilogram of non-recycled plastic contained in products. Italy's "Plastic Tax" will apply to the consumption of manufactured products for single use.

The tax aims to minimise plastic waste and encourage investment in recycling

The Plastic Packaging Tax (PPT) is a government tax levied on the production or import of plastic with less than 30% recycled content. The tax aims to minimise plastic waste and encourage investment in recycling. It came into force in the UK on 1 April 2022, with a rate of £200 per metric tonne of plastic material used. This rate increased to £210.82/tonne in the 2023 tax year.

The PPT is designed to encourage the use of more recycled plastic and applies to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic. An estimated 20,000 businesses across a broad range of sectors will be affected, including consumer goods, food and beverage, and manufacturing industries.

The tax is chargeable at £200 per metric tonne of plastic material used, which equates to 20p per kilo. Companies not responsible for directly paying the tax should keep detailed records of the packaging used.

Similar taxes have been introduced in other European countries, such as Spain and Italy. The Spanish Plastic Tax came into force on 1 January 2023 and applies to the manufacturing, intra-EU acquisition, and importation of non-reusable plastic packaging that contains non-recycled plastic. The tax is charged at a rate of 0.45€ per kilogram, with an exemption threshold of 5 kgs of non-recycled plastic per month for intra-EU acquisitions and importations of in-scope products. The Italian "Plastic Tax" will apply to the consumption of manufactured products for single use.

The Plastic Packaging Tax (PPT) came into force in the UK on 1 April 2022

The PPT is charged at £200 per metric tonne of plastic material used. This means that the cost increase will differ depending on the product. For example, pallet wrap, top sheets, tape, and strapping will all be affected differently. The tax aims to minimise plastic waste and encourage investment in recycling.

Businesses that are not responsible for directly paying the tax should keep detailed records of the packaging used. This includes manufacturers, pharmaceutical companies, food and beverage suppliers, and retailers.

The UK is not the only country to introduce a plastic tax. In Spain, the Plastic Tax came into force on 1 January 2023, applying to the manufacturing, intra-EU acquisition, and importation of non-reusable plastic packaging containing non-recycled plastic. Italy has also introduced a "Plastic Tax", which applies to the consumption of manufactured products for single use.

The tax applies to any business that imports or manufacturers plastic packaging in the UK, or is involved in the supply chain

The Plastic Packaging Tax (PPT) applies to any business that imports or manufactures plastic packaging in the UK, or is involved in the supply chain. The tax is designed to encourage the use of more recycled plastic and applies to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic. An estimated 20,000 businesses across a broad range of sectors will be affected, including those in the consumer goods, food and beverage, pharmaceutical, and manufacturing industries.

The PPT came into force in the UK on 1 April 2022 and is charged at a rate of £200 per metric tonne of plastic material used. This means that the cost increase will differ depending on the product you buy - for example, pallet wrap, top sheets, tape, or strapping. The tax aims to minimise plastic waste and encourage investment in recycling. Companies that are not responsible for directly paying the tax should keep detailed records of the packaging used.

The PPT rate for the 2023 tax year is £210.82/tonne. This rate applies to plastic packaging components with less than 30% recycled plastic, which are manufactured or imported into the UK. In Spain, the Plastic Tax came into force on 1 January 2023 and is charged at a rate of 0.45€ per kilogram of non-recycled plastic contained in plastic packaging. There is an exemption threshold of 5 kgs of non-recycled plastic per month for intra-EU acquisitions and importations of in-scope products.

The 2020 Italian Budget Law outlines a new tax, the Italian “Plastic Tax”, which will apply to the consumption of Manufactured products for single use (“MACSI”)

Spain also introduced a Plastic Tax, which came into force on 1 January 2023. This tax applies to the manufacturing, intra-EU acquisition and importation of non-reusable plastic packaging which contains non-recycled plastic. The tax is charged at a rate of €0.45 per kilogram, with an exemption threshold of 5 kgs of non-recycled plastic per month for intra-EU acquisitions and importations of in-scope products.

In Europe, each MS is required to pay a levy determined by multiplying a rate of €0.80 per kilogramme by the weight of non-recycled plastic packaging waste.

Frequently asked questions