Plastic Packaging Tax

United Kingdom

Plastic Packaging Tax (PPT) came into force in the UK on 1 April 2022. It applies at a rate of £210.82/tonne (2023 tax year rate) on plastic packaging components with less than 30% recycled plastic, which are manufactured or imported into the UK. PPT is designed to encourage the use of more recycled plastic and applies to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic.

An estimated 20,000 businesses across a broad range of sectors will be affected, impacting businesses operating in the consumer goods, food and beverage and manufacturing industries. Both manufacturers and importers of plastic packaging will be affected by PPT.

Businesses that fall within the regime will need to submit quarterly returns to HMRC detailing weights of plastic packaging components imported into the UK, manufactured in the UK, containing 30% or more recycled content, and/or exempt, amongst other things.

Impacted Sectors: Any business that imports or manufacturers plastic packaging in the UK, or is involved in the supply chain. Particularly: Manufacturers, Pharmaceutical, Food & Beverage, Suppliers & retailers.

European Update

Spain

As of 1 January 2023 the Plastic Tax came into force in Spain. The tax applies to the manufacturing, intra-EU acquisition and importation of non-reusable plastic packaging which contains non-recycled plastic. The tax is charged on non-recycled plastic contained in such products at a rate of 0,45€ per kilogram. There is an exemption threshold of 5 kgs of non-recycled plastic per month for intra-EU acquisitions and importations of in-scope products.

Italy

The 2020 Italian Budget Law outlines a new tax, the Italian “Plastic Tax”, which will apply to the consumption of Manufactured products for single use (“MACSI”). Following previous delays, it has been announced in the 2023 Budget that the entry into force of the plastic tax will again be delayed until 1 January 2024.