From 1st April 2022, a new plastic packaging tax will be applied to all virgin plastic packaging manufactured in, or imported into, the UK that does not contain at least 30% recycled plastic.
The tax is designed to provide a clear economic incentive for businesses to use more recycled plastic in packaging. This will, in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.
What is Sun Packaging doing to be compliant with the Plastic Packaging Tax?
As an importer and manufacturer of plastic packaging, Sun Packaging will be responsible for accounting for the Plastic Packaging Tax. Any invoice issued to a business customer from April 1st 2022 will list any products to which Plastic Packaging Tax has been applied, if applicable.
What packaging is subject to the Plastic Packaging Tax?
The tax applies to all plastic packaging products that do not contain at least 30% recycled content. This includes bioplastics (Such as GreenPolythene Sugar Cane, corn starch, compostable, degradable, oxy-biodegradable).
What is the tax rate?
The UK government indicates the tax rate will be £200.00 per metric tonne of virgin plastic finished product.
Do I have to report/pay the tax to the HMRC?
No. We will report and settle all due taxes at point of manufacture. This will be indicated on all invoicing, if applicable, from April 1st 2022.
Why can’t all products contain 30% recycled material?
We’re working on it! Generally up until now, recycled plastics should not be used for the storage of foods/pharmaceuticals because of the chances of contamination from unwanted substances. This is changing, and we’re working hard to offer many current ‘food use’ bags with 30% recycled content as standard, and food safe.
Will the Plastic Packaging Tax mean higher prices for us?
With a tax of £200 per tonne to be imposed, it makes it inevitable that there will need to be a reflection in price to try to absorb this tax. Of course, the tax has been put in place to encourage recycling, and to use recycled material. We are already pro-actively moving clients over to 30% recycled content to avoid increased pricing.
Contact our sales team for any queries regarding the Plastic Packaging Tax, we’re happy to help!
