UK government hikes Plastic Packaging Tax by 5.4%
The PPT rate increased from £200 per tonne to £210.82 per tonne, in line with the Consumer Price Index (CPI).
The new rate applies to all plastic packaging manufactured or imported into the UK on or after 1 April 2023.
Any packaging that has been manufactured or imported prior to 1 April 2023 will be charged at the previous rate of £200 per tonne.
It will affect UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK.
However, businesses are exempt from paying the tax if they manufacture or import less than 10 tonnes of plastic packaging in a 12 month period.
"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," according to the government.
"In turn this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration. Increasing the rate of Plastic Packaging Tax in line with CPI maintains the real terms value of the price incentive to use recycled plastic and supports the government’s environmental goals."