UK Plastic Packaging Tax (PPT)
ENFORCEMENT TIMELINE
Effective April 1, 2022
Overview
Note: Although this card is placed under the EU Domain, the United Kingdom is not an EU member state. This card describes the UK's independently operated plastic packaging tax.
The UK Plastic Packaging Tax (PPT) is an environmental tax that has been in effect since April 1, 2022, aimed at promoting the circular use of plastic resources and encouraging the use of recycled materials. It applies to plastic packaging manufactured in, or imported into, the UK that contains less than 30% recycled plastic content. Businesses that manufacture or import 10 tonnes or more of plastic packaging annually are required to register with HMRC and file and pay the tax, with transparency required across the entire supply chain.
Enforcement Timeline
April 1, 2022: The PPT is formally introduced, applying a tax of £200 per tonne on plastic packaging containing less than 30% recycled content.
April 1, 2023: The tax rate is revised to £210.82 per tonne to reflect inflation.
April 1, 2024: The tax rate is increased to £217.85 per tonne.
April 1, 2025: The tax rate is increased to £223.69 per tonne.
Ongoing: HMRC continues to strengthen its audit regime and enforce strict requirements for retaining evidence of recycled content ratios in packaging.
Business Impact
Companies exporting products to the UK need to verify the recycled content ratio of their packaging materials and factor the tax cost into their sourcing strategy.