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UK introduces new tax for plastic packaging

Following the trend of encouraging businesses to make ‘greener’ choices, UK is now introducing a new tax, which is to be collected in case of high amounts of plastic packaging. The new tax comes in force as of 1 April 2022 and is expected to add 235 million pounds to the UK budget in 2023.

Who will be affected by this plastic packaging tax in the UK?

The new tax applies not only to local UK manufacturers, but also importers of goods, whether it is empty packaging or goods already packed. Nevertheless, in order not to burden small businesses with additional administrative measures, the tax will only apply when an annual threshold of 10 tones of plastic packaging manufacturing or import will be reached. 

It’s time to recycle!

An exemption from the new tax is foreseen when the plastic packaging contains 30% or more recycled packaging. What is also important, when it comes to mixed material packaging, only packaging that has plastic material as predominant weight in full package will be subjective to the tax. These initiatives should increase the interest of using recycled or more sustainable materials, such as paper or wood, both in the UK as well as in other countries of origin.

How much will this plastic packaging tax cost?

So far, the portal for the registration and payment of the new tax is not available. Nevertheless, it is announced by the HMRC that the tax to be collected on the said material will amount to 200 pounds per tone. In addition, data records will be required to be kept. Invoicing in relation to such packaging will also need to reflect the paid tax.

Prepare now!

Make sure you are ready for the new tax – check your reporting structure, data records in relation to the plastic packaging as well as the composition of your current packaging.

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