Environmental Taxes

There are three key environmental taxes that directly affect packaging in the UK;

  • Plastic Packaging Tax
  • EPR (Extended Producer Responsibility)
  • CBAM (Carbon Border Adjustment Mechanism)

Their aim is to encourage environmentally responsible behaviour, and to act as a driver for innovation and change.

PPT

Plastic Packaging Tax

Plastic Packaging Tax is charged on all plastic packaging made from virgin plastic. The current rate of plastic tax is £223.69 per tonne. Plastic packaging made from at least 30% recycled polymer is exempt from plastic tax.

Invopak offers a wide range of recycled plastic packaging, which is free-from plastic tax. Click here to view our price comparison table and find out how much you could save by switching.

Click the button below to read our article on how plastic packaging tax is affecting businesses, and what changes it has brought to the packaging industry.

Plastic Packaging Tax

Extended Producer Responsibility

EPR

The aim of EPR, the extended producer responsibility scheme, is to shift the cost of processing packaging waste from the end-user to the producer. Large businesses have been required to submit their data for a few years now, and EPR fees are due to be payable from Autumn 2025.

EPR rates have yet to be set, but hard-to-recycle packaging is likely to be set at the highest level.

EPR Tax

Carbon Border Adjustment Mechanism

CBAM

CBAM, is the EU's carbon border adjustment mechanism. It is a charge levied at high carbon-emission goods that are imported into the EU. The aim is to ensure that goods produced in higher-polluting countries, that may not comply with EU environmental law can not undercut European producers.

Invopak sources packaging from the UK and Europe, which helps to minimise the cost of CBAM.

CBAM

Recycled Plastic Packaging

Recycled plastic packaging, prevents waste and is free-from plastic tax. Many of our products now come in PCR as standard, and we offer it across most of our plastic range.
View range

Metal Recycles Forever

Metal recycles forever with no loss of quality, making it one of the most sustainable types of packaging. Choose from metal tins, steel drums, aluminium bottles, pails and paint cans.
View range

Simple Packaging

Mono-material packaging is made from a single material, so it is easier to recycle. Virtually all our packaging is mono-material, so it is more sustainable, and has a lower environmental tax rate.
Learn more

Sustainable packaging

Made by Invopak

We make metal packaging at our factory in Manchester. Our range includes lever lid tins and UN approved rectangles. Metal recycles forever and choosing a UK supplier minimises the carbon footprint too.

Click the button below to view the brochure.

View Brochure

Environment Taxes FAQs

What are environmental taxes?
Environmental taxes, or green taxes, are designed to reduce activities that have a negative environmental impact, whilst boosting activities that have a positive environmental impact. The UK's environmental taxes include Plastic Packaging Tax and EPR.

Is EPR the same as Plastic Tax?

No EPR and plastic tax are not the same. EPR is Extended Producer Responsibility, and is a tax charged on every type of packaging, including metal, card, paper, and plastic packaging. EPR is designed to make the producer pay for the cost of managing the waste. Plastic tax is a tax charged on virgin plastic packaging (recycled plastic packaging is exempt).

What is the purpose of environmental taxation?
The purpose of environmental taxes is to reduce the damaging impact of human activity on the environment. Plastic tax aims to reduce plastic waste by encouraging the use of recycled plastic and alternative packaging, whilst EPR is designed to encourage producers to innovate by putting the cost of packaging waste processing on them.

How do environmental taxes affect the price of packaging?
It means that most packaging will cost more. For Invopak customers the exact cost of plastic tax will be shown at check out, when applicable. Recycled plastic products that are not liable for PPT have a "plastic tax exempt" button.

How can I avoid plastic tax?

Plastic tax does not apply to products made from at least 30% recycled plastic, and metal packaging is, of course, exempt. Get in touch if you'd like to explore possible alternatives for your business.

How do I know how much plastic packaging tax to pay?
Plastic tax is charged at the rate of £233.69 per tonne. When you make a purchase from Invopak any plastic tax will be shown separately.