Plastic Packaging Tax
Rate change from 1 April 2023
Published by the UK HM Revenue and Customs. 15th March 2023
Who is likely to be affected?
UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK.
Proposed revisions
The rate as set out in section 45 of the Finance Act 2021 will be amended from £200 per tonne to £210.82 per tonne with effect from 1 April 2023.
Impact on business
Uprating Plastic Packaging Tax by CPI maintains the real terms value of the incentive to include 30% or more recycled plastic in plastic packaging components.
The changes made by this measure do not change the Justice Impact Test previously completed and published here.
This measure is expected overall to have no impact on the business experience of dealing with HMRC as the change is the expected annual uprating of Plastic Packaging Tax and doesn’t change any processes or tax administration obligations.
The Policy objective
The aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration. Increasing the rate of Plastic Packaging Tax in line with CPI maintains the real terms value of the price incentive to use recycled plastic and supports the government’s environmental goals.
Background to the measure
Plastic Packaging Tax was introduced on 1 April 2022 as a part of the government’s Resources and Waste Strategy. Plastic Packaging Tax encourages the use of recycled plastic in packaging and to divert plastic away from incineration or landfill. Alongside other measures, Plastic Packaging Tax supports the government’s ambition to eliminate avoidable plastic waste by 2042.
Monitoring and evaluation
The measure will be monitored through information collected from tax returns and receipts.
Further advice
If you have any questions about this change, please contact The Plastic Packaging Tax policy team by email: indirecttaxdesign.team@hmrc.gov.uk.
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