Plastic Packaging Tax
Plastic packaging tax is one of a range of measures included in the UK government's; "Our Waste, Our Resources" plan designed to protect resources and limit the environmental impact of waste.
Plastic Packaging Tax has recently been increased from £200 per tonne to £210.82 per tonne. The new rate will be liable from 1st April 2023.
The UK government has introduced a range of legislation designed to move the UK towards a more circular economy, where resources are maximised, and waste is minimised.
PPT is an environmental tax designed to provide a financial incentive for businesses to reduce their use of single use virgin plastic and increase their use of recycled plastic. 30% recycled packaging is PPT exempt, raising the demand for PCR plastic, making plastic waste more valuable and helping to divert it away from landfill or incineration.
Most plastic packaging products will be affected, including; packaging with less than 30% recycled content and imported products, such as drinks in plastic bottles.
The tax only applies to plastic packaging manufactured or imported into the UK; this means that goods imported and then exported within a twelve month timescale may be eligible for a credit from HMRC. Invopak includes PPT as a separate line on your invoice to help make these costs clear.
What are the alternatives to standard plastic?
There are a range of alternatives available including packaging made from PCR, tin plate and aluminium.
Post Consumer Resin (PCR)
PCR is also called post consumer recycled, post consumer regrind or post consumer recyclate, they all refer to products that contain recycled plastic. PCR products that include 30% or higher levels of recycled plastic are not liable for PPT.
For the container to maintain its integrity & performance, it has to have the right blend of PCR and virgin material, which is why the threshold is 30%. At Invopak we are increasing our PCR range as more products come to market, including a new PCR bucket range, as well as a wider variety of Jerry cans and HDPE bottles. See our full range of Recycled Containers here.
Metal packaging is exempt from the tax, so aluminium bottles, lever lid tins and metal pails are unaffected. Even if a metal container includes plastic parts, as long as plastic is not the heaviest component PPT will not apply, so a metal bottle with a plastic shroud is not liable for the PPT charge.
We are one of the biggest suppliers of metal packaging in the UK and they are one of our fastest growing ranges. Metal can also be recycled forever, making it an excellent choice for the environment. See our full selection of metal containers here.