Plastic Tax – UPDATE!

In April 2025 the government will increase the Plastic tax of £217.85 per tonne to £223.69 per tonne on all plastic products that are not at least 30% recycled. On 1st April 2025 the plastic tax increase will take effect.

What is the aim of the plastic tax?

The aim of the plastic tax is to reduce the use of new virgin plastics and encourage the use of recycled plastic which will, in turn, stimulate recycling and waste collection levels, to divert plastic waste away from landfill or incineration. Plastic packaging manufactured in the UK or imported into the UK after the 1st April 2022 will be liable for the tax. The plastic tax will also be subject to VAT.

What will the plastic tax apply to?

The new tax will apply to all plastic packaging – i.e., predominantly plastic by weight – that does not contain at least 30% recycled plastic. This includes bioplastics – i.e., plastics that are compostable, biodegradable or oxo-degradable.

Will I have to pay plastic tax?

The new tax will result in two purchasing options being available for customers:
1) Purchase bags or film made from Virgin Polythene and pay the new tax which is added to the products cost.
2) Avoid the new Plastic Tax by purchasing products with 30% recycled content.

You do not have to pay the PPT to HMRC. The packaging manufacturer or importer will account for the PPT and collect it on behalf of HMRC. Manufacturers or importers have to pay £200 per metric tonne of virgin plastic packaging they produce/import.

As a customer, any products to which PPT has been applied it will be included in the price of the product. the manufacture/importer accounts for the PPT and collects it on behalf of HMRC, so customers don’t have to worry about it and can buy as normal.

Will using recycled material effect the product?

At first glance the obvious choice may seem to be to purchase recycled content products, however customers should be aware of what impact using recycled material can have on the products they purchase.
As the ratio of recycled plastic versus virgin plastic used in a product increases, the product can change in a number of ways:

• Clarity – in clear packaging, more recycled content means a reduction in clarity or transparency.
• Strength – more recycled content can cause a reduction in a product’s tensile strength, impact strength, tear strength and elongation;
• Texture – more recycled content will likely mean more imperfections in the product, such as a rougher texture, or clear or black specks. These properties can also differ from batch to batch of recyclate;
• Odour – recycled plastic can sometimes give off a slight ‘burnt’ or ‘smoke-like’ smell. Whilst this does not affect the material’s performance, it may transfer to clothes or other fabrics if placed in direct contact.

Unlike Virgin LDPE which produces a high clarity film and is made to very tight tolerances of Grade and Additives, recycled material is a mixture of used packaging which was made for many different packaging applications. In most cases sourcing the best recycled material available, is priority.

However, due to the increased demand for recycled material caused by the new tax, the quality of recycled material is very likely to deteriorate when compared to that currently available, as more mixed and variable plastic packaging will be included to try and meet demand.

Virgin Vs Recycled

Customers need to be aware that the 30% recycled material may vary in appearance, colour, physical performance and may have an unpleasant smell, which could affect its suitability for its intended use.

You can see from the pictures of samples of recycled material below just how much it can vary in quality and this may vary from order to order from the same supplier, even within the same delivery.

What are the Pros and Cons?

Pros:

• Stimulate a greater demand for recycled material
• Encourages residents and local councils to be more proactive when it comes to recycling their waste polythene
• Raises awareness of the waste management issues surrounding polythene
• Helps protect the environment whilst still gaining the benefits of protective packaging

Cons

• Can vary in colour and clarity
• Contains mixed grades
• Can have an odour
• Can contain other unsuitable plastics
• Can include contamination causing significant waste
• Price of recycled material is most likely to go up due to demand and short supply
• The plastic tax will be chargeable

Have more questions?

If you have a question about the Plastic Packaging Tax, please contact us.