The introduction of the new UK Plastic Packaging Tax comes into force on 1 April 2022, following the 10 May 2021 guidance on how businesses that manufacture or import packaging to the UK must proceed. This latest tax is being positively received as a responsible move towards promoting and supporting a circular economy, promoting increased levels of recycled material in plastic packaging by taxing products with less than 30% rPET.
Driven by the sustainability objectives of the UK government, whose policy paper 'Introduction of Plastic Packaging Tax from April 2022', which was updated on 20th July 2021, the new tax will see plastic packaging now subject to a £200 per metric ton of virgin plastic packaging tax for finished plastic packaging that does not contain at least 30% of recycled material. The tax is regardless of whether the packaging itself is filled or unfilled, or if it is manufactured in the UK or imported to the UK.
The policy defines plastic packaging as 'packaging that is predominately plastic by weight' and across all sectors, with exceptions only for the primary packaging of medicines, transport packaging for imported goods, packaging used as aircraft, ship and rail stores, and components designated for use other than packaging. Liability for the tax can also be deferred for exported plastic packaging.
Safe to say that the vast majority of plastic packaging produced in or destined for the UK market will be subjected to this tax as it is for the long-term environmental benefit of us all. With the UK manufacturing and importing a total of 10 million tonnes of plastic packaging each year, the policy objective is hooked on an economic incentive for businesses to use recycled plastic, and for brands to request a greater percentage of rPET in their packaging.
PONT Europe marketing manager Ulric Lonfils tells Sustainable Plastics how the Europe-wide plastic and glass packaging partner is already planning to support its customers through the changing legislation. He says, “We're used to working closely with our customers, so this new legislation is just another area for us to support them. All our standard and bespoke portfolio can be delivered with 30% rPET and many items in stock produced from 100% rPET, so we're on hand to suggest alternatives for their current packaging or show how our portfolio can help them avoid the tax and stay responsible.”
Responsible packaging needs reliable partners
The greater demand predicted for rPET will therefore stimulate increased levels of recycling and a more efficient collection of plastic waste, both diverting it from landfill and increasing the availability of recycled plastic for integration into the plastics circular economy. By increasing the threshold of non-plastic taxed plastic packaging to 30%, the UK government predicts that the use of recycled plastic could increase by around 40%, saving around 200,000 tons of carbon emissions by 2023.
The introduction of the UK plastic packaging tax brings with it a tangible incentive for brands to consider how their plastic packaging partners are staying close to the legislation, and to open a conversation about what preparations are being made so everyone is ready for 1 April 2022.
PONT UK has been producing rPET and HDPE responsible packaging for some years, and established an active cross-departmental task force in 2018 with the goal of bringing its Green Packaging capabilities and latest news to all customers interested in using more sustainable solutions. Lonfils explains, “Even though the UK Plastic Tax is new, our appreciation of raw materials and our commitment to providing responsible packaging has been around for ages! We're well-positioned to support customers in choosing plastic packaging with a minimum of 30% rPET; all our packaging is easily recyclable in standard collections, with the team keen to work with customers to guarantee that all their plastic packaging is responsible and in line with the latest regulations. It's important that brands don't see this tax as a problem, it's very much a progressive development as it shows that plastic packaging that is made in the UK or imported from the UK is leading the way in terms of sustainability.”
The UK Plastic Tax brings with it an economic incentive for businesses to use recycled plastic, providing exciting opportunities for brands to highlight how they support this forward-thinking initiative with on-pack messaging, while also helping to promote a circular economy. With the positive role of plastic packaging being allowed a little more airtime recently, this is the type of holistic step forward that shows that responsible use of plastic delivers on all levels.
Lonfils concludes, “We all need to be part of a sustainable future; the UK plastic packaging tax can be seen as an opportunity to do the right thing.”