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Businesses ‘unaware’ of Plastic Packaging Tax

A new study has found 83% of businesses are “not aware” of the Plastic Packaging Tax (PPT), which will be coming into force in April 2022.

A new study has found 83% of businesses are “not aware” of the Plastic Packaging Tax (PPT), which will be coming into force in April 2022.

The study by Veolia, in partnership with YouGov, surveyed 507 people. It found that, although many were unaware of the tax, it was largely supported by those questioned.

The Plastic Packaging Tax will charge £200 per tonne of plastic packaging placed onto the UK market that does not contain at least 30% recycled content. The tax seeks to encourage the use of recycled content in plastic packaging, stimulating end markets for recycled plastic.

The burden for businesses will come from the lowered de minimis, 10 tonnes of plastic packaging placed onto the market and the additional data required to reflect an accurate submission for HMRC, made quarterly.

The Plastic Packaging Tax is one of several legislative changes that will be happening in the coming years, with the tax targeting the highly publicised issues surrounding single-use plastic and its impact on the environment. By imposing this on plastic packaging, the government hopes to encourage businesses to look at current packaging designs, in turn creating demand for recycled material and driving up the need to collect and process plastic collected.

Historically, the UK has exported a vast amount of its plastic waste. In 2020, it exported 688,222 tonnes of plastic, which represented 58.4% of the total plastic waste collected that year. The Plastic Packaging Tax, along with the upcoming Resources and Waste Strategy, will be looking at ways to improve collection rates and the quality of waste collected for recycling.

We're working hard to further the understanding of our packaging compliance members and other businesses that may be impacted

Sam Caplen

Data Manager

Sam Caplen, Data Manager at Clarity Environmental commented: “The results of the survey reflect what we have been seeing, with many businesses still unaware of the coming changes with Plastic Packaging Tax and Extended Producer Responsibility.

“We’re working hard to further the understanding of our packaging compliance members and other businesses that may be impacted by the tax, by offering a far greater range of data services; something that will become increasingly important for businesses who place packaging onto the market.”

Unsure of how the Plastic Packaging Tax will impact your business?

If your business places over 10 tonnes of plastic packaging onto the UK market, you will be liable for the Plastic Packaging Tax in April 2022. This will see costs rise significantly for many, along with the additional burden of greater data reporting to HMRC. If you would like to find out how the tax will work, the likely costs and reporting requirements, sign up to our Plastic Packaging Tax webinar, to be held on Tuesday 7 September at 11:00.

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