The UK government will introduce the PPT on 1 April 2022. After this time, tax at the rate of £200 per tonne will have to be paid on any plastic packaging that falls within the tax rules. The tax applies when the plastic packaging component does not contain a minimum of 30% recycled content.
Businesses that manufacture or import packaging will need to take steps to establish their status within the tax.
Companies that manufacture or import more than 10 tonnes of plastic in 12 months will have to register and keep additional records to calculate and pay the tax if they are performing the last substantial modification before filling, packing, and labelling.
As printing has been designated as a ‘substantial modification’, many packaging producers will undertake the last substantial modification and be required to pay the tax.
Since last year the BPIF has been lobbying the new legislation by actively engaging in discussions with HMRC and responding to the consultations.
“Even though we are still awaiting further clarification from HMRC, having an understanding and awareness of PPT is key to ensuring that your business can be proactive when it comes to complying with the PPT regulations,” the BPIF stated.
“The upcoming legislation will increase pressure on business operations, administrative processes, and impact costs.
“At the BPIF, we are working to source best practice solutions and to support our industry in understanding and implementing the upcoming legislation, especially how the legislation will impact specific industry sectors. We will be providing updates from HMRC and delivering roundtables where members can discuss their concerns and get their questions answered.”
After the implementation of the tax there will be a PPT webinar series put in place by the BPIF to provide companies with step-by-step guidance on the legislation. The PPT activity will be shared on the BPIF’s PPT hub webpage.
A PPT helpdesk email account has also been created by the BPIF for companies to share their questions or queries: ppthelp@bpif.org.uk.
Either internal experts at the BPIF will be available to provide an answer or the organisation will engage with HMRC for more information on the query.
The BPIF has invited the industry to answer its PPT survey, to find out what individuals know about the legislation, if they have been communicating with HMRC, and more.
Further information on the new tax, and the steps required for affected businesses, are available at: www.gov.uk/government/collections/plastic-packaging-tax.
