The United Kingdom is intensifying its fight against plastic pollution by gradually increasing the plastic packaging tax. Manufacturers and importers of plastic packaging exceeding a threshold of 10 tonnes over the past 12 months are subject to a tax of £217.85 per tonne. Starting on April 1, 2025, this rate will increase to £223.60 per tonne.
Who is concerned?
Targeted companies
The tax applies to companies that manufacture or import plastic packaging containing less than 30% recycled materials.
Types of impacted businesses
It affects a wide range of companies, including:
- Producers of finished products packaged in plastic.
- Importers of packaging materials intended for distribution within the UK.
Tax threshold
The threshold is set at 10 tonnes of plastic packaging over a 12-month period.
Tax implications
Even small amounts of plastic packaging can result in tax obligations if they exceed the annual 10-tonne threshold.
Why is this increase happening?
The purpose of this tax is to encourage companies to reduce their use of virgin plastics and to promote the incorporation of recycled materials in their packaging.
