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March 11, 2020

UK Budget sets out details of plastic packaging tax

UK Chancellor of the Exchequer Rishi Sunak has today revealed that the plastic packaging tax will see companies paying £200 per tonne of packaging made from less than 30% recycled plastic from April 2022.UK Budget sets out details of plastic packaging tax

By Jessica Paige

UK Chancellor of the Exchequer Rishi Sunak has today revealed that the plastic packaging tax will see companies paying £200 per tonne of packaging made from less than 30% recycled plastic from April 2022.

The tax was created to encourage the use of more recycled plastic. The announcement was delivered as part of Budget 2020, which GOV.UK describes as “the first budget of a new government, the first of a new decade, and the first since the UK’s departure from the European Union (EU).”

The Budget 2020 report issued following Sunak’s announcement says: “The government will keep the level of the rate and threshold under review to ensure that the tax remains effective in increasing the use of recycled plastic.

“The government will also extend the scope of the tax to the importation of filled plastic packaging and apply a minimum threshold of 10 tonnes of plastic packaging to ensure the smallest businesses are not disproportionately impacted.”

The plastic packaging tax was initially announced in the 2018 Budget and was brought into consultation in spring 2019.

Sunak added that an additional £700,000 will be used to establish the Extended Producer Responsibility (EPR) scheme, which will encourage producers to make packaging more recyclable and reduce unnecessary packaging.

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