What is the UK Plastic Packaging Tax?
On 1 April, the UK Government announced a new levy on packaging that will affect businesses across the board.
The ‘Plastic Packaging Tax’ charges GBP200 (US$260) per tonne of “finished plastic packaging components” that contain less than 30% recycled plastic. Manufacturers or importers of ten or more tonnes of plastic will have to pay the tax.
Check which packaging is subject to Plastic Packaging Tax
When packaging is considered plastic
For the purposes of Plastic Packaging Tax, plastic means a polymer material to which additives or substances may have been added.
Cellulose-based polymers that have not been chemically modified, such as viscose, will not be treated as plastic for the purpose of Plastic Packaging Tax.
Other cellulose-based materials which are chemically modified, such as cellulose acetate, will be considered plastic.
Additives include materials such as calcium or dyes. When you assess the amount of plastic in a packaging component, the additives are classed as part of the plastic.
Plastics include polymers which are:
- biodegradable
- compostable
- oxo-degradable
If a plastic packaging component is made from multiple materials but contains more plastic by weight (including additives which form part of the plastic) than any other substance, it will be classed as a plastic packaging component for the purposes of the tax.
The other substances which you need to consider are:
- glass
- aluminium
- steel
- other metals
- paper and board
- wood
- any other substance
Recycled plastic
Plastic packaging components containing 30% or more recycled plastic are not chargeable for the tax. However, they still count towards the 10-tonne threshold for packaging you manufacture or import in a 12 month period, and you must still keep records of it.
For the purposes of Plastic Packaging Tax, all plastic is assumed to be made using non-recycled (virgin) material, unless there is evidence that recycled material has been used.
Calculating whether multiple material packaging components are plastic
Example 1
A 10-gram carton is made up of:
- 4 grams of plastic
- 3 grams of aluminium
- 3 grams of cardboard
All 10 grams will be considered a plastic packaging component as plastic is the heaviest material.
Example 2
10-gram carton is made up of:
- 2 grams plastic
- 5 grams of aluminium
- 3 grams of cardboard
This component will not be considered a plastic packaging component as plastic is not the heaviest material.
Example 3
10-gram carton is made up of:
- 5 grams plastic
- 5 grams cardboard
This component will not be considered a plastic packaging component as plastic is not the heaviest material.
How to calculate the recycled plastic content of plastic packaging components
Example 1
A plastic packaging component made up of:
- 2 grams of recycled plastic
- 2 grams of virgin plastic
- 3 grams of aluminium
- 3 grams of cardboard
To calculate the proportion of recycled plastic, divide the recycled plastic weight by the total weight of all plastic elements and multiply by 100.
2 ÷ 4 = 0.5 × 100 = 50%
The tax would not be due as the percentage of recycled plastic (50%) exceeds the threshold of the plastic element of the packaging.
Example 2
Packaging component made up of:
- 1 gram recycled plastic
- 4 grams of virgin plastic
- 2 grams of recycled aluminium
- 3 grams of recycled cardboard
To calculate the proportion of recycled plastic, divide the recycled plastic weight by the total weight of all plastic elements and multiply by 100.
1 ÷ 5 = 0.2 × 100 = 20%
In this example, the percentage of recycled plastic does not meet the recycled plastic content threshold. The Plastic Packaging Tax is due on the entire 10g packaging component.
Source:
1. https://www.packaging-gateway.com/analysis/could-the-plastic-packaging-tax-unwrap-innovation-comment/
2. https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax
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