What you need to know about Plastic Tax

In the March 2020 budget, Rishi Sunak announced that the Plastic Packaging Tax will be going ahead in April 2022. The Plastic Packaging tax will apply at a rate of £200 per tonne of plastic packaging which does not contain at least 30% recycled plastic. This will apply to plastic packaging which has been manufactured in or imported into the UK. The government have said they will keep the rate of the tax and the 30% recycled plastic threshold under review to ensure that the tax remains effective in increasing the use of recycled plastic.

The reason for the introduction of the tax

The tax aims to encourage the use of recycled plastic instead of new plastic in the production of new packaging products. This will create a greater demand for recycled plastic and in turn stimulate increased levels of recycling and collection of plastic waste and in turn divert it away from landfill or incineration.

Does this tax apply to your business?

Businesses that manufacture or import less than 10 tonnes of plastic in a 12-month period from the requirement to pay the tax will be exempt. The reasons given for this is to ensure that the administrative burden and cost of collecting the tax is not disproportionate to the environmental harms the tax seems to address.

What you can do now in readiness for the introduction:

The packaging industry introduced positive changes to recycle and re-use valuable polythene waste way before the plastic tax was introduced. Here at Duo we’re in a favourable position when it comes to re-engineering packaging products to include the required level of recycled content to meet the threshold. Our very own polythene closed loop recycling facility makes it easier than ever for our customers to reduce, reuse and recycle waste polythene. We pick up waste polythene from our customers premises and pay them for the good quality. The waste polythene is then recycled and manufactured into new packaging products.

How Closed Loop Recycling can work for your business:

We’re doing all we can to keep valuable material in the economy and out of the environment. We have already invested in equipment to ensure that waste is kept to a minimum throughout the manufacturing process and we’ve re-engineered our clients products to include a higher percentage of recycled material without impacting on performance. These changes help to keep valuable polythene in the loop, avoid landfill and meet the new requirements for recycled materials in new packaging products.

In addition we have developed super strength blends which use less raw material yet maintain the performance and quality of extra-thick polythene films.
If you want to make the first step in re-engineering your existing products to include recycled materials contact us here

Source: https://www.accountancydaily.co/budget-2020-plastic-packaging-tax-outlined