Blog post -
Are You Ready For The Plastic Tax?
The new plastic tax comes into effect on 1st April 2022, is your business ready?
According to the government, the tax will apply to any plastic packaging manufactured in, or imported into the UK, that contains less than 30% recycled plastic. The hope is that by implementing this measure, businesses will have an economic incentive to reconsider their packaging needs and opt instead for more sustainable alternatives. Demand for recycled plastic is likely to increase as a direct result which, will, in turn, stimulate increased levels of recycling and plastic waste collection in the wider community, diverting plastic away from landfills or incineration, and moving the UK one step closer to a circular society.
However, a recent survey by the FPA (Foodservice Packaging Association) indicated that the majority of the hospitality sector are not prepared for the tax implementation, with 80% of members who currently sell plastic packaging and products not yet in a position to administer the tax. Whilst 50% are still uncertain which of their products are subject to the tax, and over 60% have yet to work out a method for measuring recycled content.
The environmental tax will be set at £200 per metric tonne which is a substantial cost for businesses to shoulder. The government has announced that businesses who either manufacture or import less than 10 tonnes of plastic packaging per year, are exempt to mitigate against disproportionate administrative burdens in comparison to the tax liability for those who will be affected. Most businesses will need to consider whether they absorb the cost themselves or pass it on to their consumers.
What are your next steps?
- Consult official government guidance to read more about the implementation of the plastic packaging tax, otherwise referred to as PPT, to see how it will affect you.
- Understand if you must register for PPT, you should work out the weight for each component you manufacture or import. If you do need to register, you’ll need these weights to work out how much tax is due. You must be registered by Friday 1st April 2022.
Rather than seeing the tax as a threat, we believe it should be considered an opportunity. The past couple of years has seen a steady increase in sustainable packaging alternatives at affordable prices, such as bagasse, 100% recycled CPET trays and fully compostable fibre trays which are also ideal for takeaway. Shifting your packaging to ‘greener’ alternatives will be seen in a positive light by your customers, with 61% of consumers already reducing their own single-use plastic usage, and a third of users now looking for brands with strong sustainability credentials.
Duni offers everything you need to deliver fresh quality food and beverages to your customers with our Duniform® packaging range enabling you to move away from unsustainable plastic. From sealing machines and leakproof films to FSC®-certified trays and environmentally takeaway containers, Duniform® is ideal for today’s hygiene and environmentally conscious world.
