The 2021 Finance Bill enacts a plastic packaging tax (the "Tax") by legislating for a more sustainable and environmentally friendly tax system.
It is estimated that the tax could lead to a roughly 40% increase in the use of recycled plastic in packaging, which is equivalent to a reduction of nearly 200,000 tonnes of carbon emissions between 2022 and 2023. Increased demand for recycled plastic will lead to more recycling and collection of plastic waste, helping to reduce the UK's carbon footprint and build a greener sustainable economy.
Plastic packaging containing less than 30% recycled plastic ("paid plastic packaging") produced in the UK or imported into the UK will be taxed at £200 per tonne.
If the charging plastic packaging is manufactured in the UK, the tax will be paid by the manufacturer, while if the charging plastic packaging is imported into the UK, the tax will be paid by the representative of its importation.
Unless otherwise stated, the recycled plastic content of plastic packaging components will be considered to be less than 30%. The recycled content of a module will be based on a comparison of the weight of the plastic material within the module to the recycled content. For these purposes, recycled plastic is plastic that is reprocessed from recycled materials through chemical or manufacturing processes, rather than organically recycled, so that it can be used for its original purpose or otherwise.
Plastic packaging will not be taxed in the following cases:
It has a recycled plastic content of 30% or more;
It is made of a variety of materials, by weight, plastic is not the heaviest in proportion;
The business produces and/or imports less than 10 tons of plastic packaging per year;
Manufacture or import for direct packaging of pharmaceuticals for human use;
It is used as transport packaging for importing products into the UK; or
It is exported, filled or unfilled, unless it is used as transport packaging for exporting products outside the UK.
Tax will be paid by reference to the accounting period determined by HMRC in accordance with regulations.
This tax can be deferred if billed plastic packaging is intended for direct export. The extension period is 12 months from the date of production or import of the chargeable plastic packaging. If the chargeable plastic packaging is exported before the end of the deferral period, the liability will be waived.
The manufacturer or importer responsible for the tax must declare on its invoice that the tax has been paid.
The tax could affect UK producers of plastic packaging, importers of plastic packaging, commercial customers of plastic packaging producers and importers, and, to a lesser extent, consumers of plastic packaging in the UK. As the tax has little impact on prices for consumers, it is unlikely to deter the purchase of ready-to-eat meals or unhealthy foods that are often packaged in plastic, and therefore may not help the campaign against obesity.
Only plastic packaging components manufactured in the UK or imported into the UK after 1 April 2022 will be included in the calculation of the tax. Those who are obligated to register must notify HMRC before the end of the notice period, which is 30 days from the first day the liability arises. HMRC will register the person from the date the liability arises.
Disposable environmentally friendly pulp tableware such as pulp trays, pulp bowls, pulp lunch boxes can be a good substitute for disposable plastic tableware. In addition to the disposable pulp tableware, Shenglin Packaging also has other disposable food packaging products, such as paper bowls, paper cups, and paper boxes. Please feel free to inquiry.
