ARTICLE · 18 JANUARY 2024

What Is Plastic Packaging Tax (PPT), Upcoming Changes, And How May It Affect Me?

Price Bailey

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Plastic Packaging Tax (PPT) became effective in the UK on the 1st April 2022 as part of the government's Resources and Waste strategy...

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Molly Rushworth

What is PPT?

Plastic Packaging Tax (PPT) became effective in the UK on the 1^st April 2022 as part of the government's Resources and Waste strategy, aiming to encourage businesses to use recycled plastic in packaging and reduce plastic waste.

HMRC states that "the aim of the tax is to provide a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn, this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration."

Businesses that manufacture or import 10 tonnes or more of plastic packaging within a 12 month period have to register to pay PPT; currently at a rate of £210.82 per tonne (2023 tax year) on plastic packaging components with less than 30% recycled plastic that are manufactured or imported into the UK.

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