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Plastic Packaging Tax

  • Published on February 18, 2021
This is a world leading new tax that will apply to plastic packaging produced in, or imported into, the UK that does not contain at least 30% recycled plastic. The rate of the tax will be £200 per tonne of plastic packaging. This tax will provide a clear economic incentive for businesses to use recycled material in the production of plastic packaging, which will create greater demand for this material and in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill and incineration. Estimates from November 2020 were that HMRC will incur estimated costs of £6.59m developing a new computer system to support this tax, together with £11.36m in staff costs. There may also be extra costs incurred by the Ministry of Justice as a result of this new tax, which will be quantified in due course.
As noted above, this policy instrument will encourage the use of recycled plastic, which represents a more sustainable method of production than the use of virgin plastics.

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