What is Plastic Packaging Tax (PPT)?
Plastic Packaging Tax (PPT)
This is the tax applied to plastic packaging manufactured or imported into the UK containing less than 30% recycled plastic.
Whilst the intention of PPT is to encourage businesses to use more recycled plastic in their packaging and reduce the amount of plastic going into landfill. By making it more expensive to buy virgin material, the tax incentivises producers to focus on their recyclability and sustainability efforts.
You need to register for Plastic Packaging Tax if:
- You expect to import or manufacture 10 tonnes or more of finished plastic packaging components in the next 30 days, or
- You have imported or manufactured 10 tonnes of more of finished plastic packaging components in the last 12 months.
This also includes packaged goods imported into the UK, even if the original business is not registered here.
Plastic Packaging Tax applies to all plastic packaging that is used to contain or protect goods.
This includes:
- Bottles
- Pots
- Trays
- Film
- Wrap
Exemptions include:
- Packaging used for medical supplies
- Packaging used to safely transport goods into the UK
- Packaging that contains more than 30% recycled plastic
Packaging should only contain recycled plastic where it is permitted under other regulations and food safety standards.
Plastic Packaging Tax has increased since it’s introduction in 2022.
The current rate as of April 1st 2024 is:
£217.85 per tonne of packaging made from less than 30% recycled plastic.
The rate is set to increase again on April 1st 2025, this should be in the region of:
£223.69 per tonne of packaging made from less than 30% recycled plastic.
Plastic Packaging Tax intends to financially penalise those who are still using virgin plastic for 70% of their plastic packaging.
It is hoped that the impact of this taxation will:
- Increase the use of recycled plastic within packaging – reducing the reliance on virgin material
- Reduce the amount of plastic waste heading to landfill – with producer investment in recouping as much plastic as possible
- Improve investment in recycling infrastructure – easier means of recycling, easier production of recycled packaging
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