Plastic packaging tax

From April 2022, a new tax comes into effect that applies to plastic packaging produced in, or imported into the UK, that does not contain at least 30% recycled plastic. This covers all packaging that is predominantly plastic by weight. Plastic packaging with 30% or more recycled material will be exempt from the tax.

This should provide a clear economic incentive for businesses to recycle, and in turn should create greater demand for (and increase production of) recycled materials.

The tax rate will be £200 per tonne [of packaging with less than 30% recycled plastic]. For more information, see the plastic packaging tax policy paper at gov.uk.