The plastic packaging tax consultation is one of 10 such discussions being conducted by the UK's HMRC to be pushed back

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It's likely to be the UK government's final consultation on the plastic tax ahead of its implementation in April 2022 (Credit: Pixabay)

The UK’s plastic packaging tax consultation will be delayed by three months, the government has announced.

The tax, which is due to be introduced in April 2022, will charge manufacturers who fail to have at least 30% recycled content in their plastic packaging products.

It is one of 10 consultations being conducted by the UK’s HMRC to have its deadline pushed back.

The move is designed to ensure Covid-19 disruption will not prevent interested parties having their say on possible tax changes.

Treasury Minister Jesse Norman said: “Consulting on tax policy is crucial to good tax law. And a good consultation makes sure everyone with an interest in the subject has an opportunity to have their say.

“That is why we are extending these deadlines. The government is very grateful to the stakeholders who have already responded to these documents.

“But it is also acutely aware that there may be others who want to contribute but cannot do so because of the current situation with Covid-19. This extension should help them to do so.”

 

It’s ‘common sense’ to delay the plastic packaging tax consultation, says trade body

The ongoing plastic packaging tax consultation is intended to provide further details on how the tax will work in practice, along with seeking views on its design ahead of implementation in 2022.

The consultation’s deadline was initially scheduled for 20 May, but this has been pushed back to 20 August.

plastic packaging tax consultation
The three-month delay is designed to ensure those facing Covid-19 disruption will have a chance to have their say on possible tax changes (Credit: Pixabay)

Trade body the Foodservice Packaging Association’s (FPA) executive director Martin Kersh welcomed the “common sense” decision.

He said: “It would have been very difficult for businesses to meet the current deadline with so many environment managers currently furloughed and FPA members’ manufacturing capacity redirected to producing much-needed personal protective equipment.

“The due process for the consultation has also been disrupted with the cancellation of stakeholder roundtable meetings.

“We look forward to participating in the process once it is reinstated.”

 

What is the UK’s plastic packaging tax?

The UK government announced it would introduce the plastic packaging tax during Chancellor Rishi Sunak’s Spring Budget in March.

It will see plastic packaging manufacturers in the UK charged if they fail to have at least 30% recycled plastic in their products.

The tax will however not apply to products weighing less than 10 tonnes, which is designed to ensure smaller businesses are not disproportionately hit.

The government has said it would extend the £200 tax to imported filled plastic packaging.

plastic packaging tax, plastic packaging tax consultation
Rishi Sunak was appointed the UK’s chancellor earlier this year (Credit: Flickr/ministry of housing, communities and local govt)

Speaking at the time, Sunak said: “To tackle the scourge of plastic waste, we will deliver our manifesto promise to introduce a new plastic packaging tax.

“From April 2022, we will charge manufacturers and importers £200 ($257) per tonne on packaging made from less than 30% recycled plastic.

“That will increase the use of recycled plastic packaging by 40%, equal to carbon savings of nearly 200,000 tonnes.”

 

History of the UK plastic packaging tax

Charges being put on single-use plastics were first proposed by former prime minister Theresa May in January 2018, as part of the government’s 25 Year Environment Plan.

Two months later, the Treasury launched a consultation looking at the potential taxation system – which received a record 162,000 responses.

This investigated what should be part of the scheme, how to increase recycled content in packaging, and the barriers to using alternative materials.

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A tax on single-use plastic was first outlined by Theresa May in 2018 (Credit: Flickr/Raul Mee)

Further details on how the system could work were outlined by then-chancellor Philip Hammond during his 2018 Budget.

The following year, the government conducted another consultation on the tax, which took place between February and May.

This looked at what packaging should be included, how to assess recycled content, and the businesses liable for the charges.

 

The industry still has reservations over the plastic packaging tax

Despite the consultations, members of the packaging industry still have reservations about the tax.

One of the concerns has been whether the cash raised will be distributed to other parts of the economy, rather than reinvested in the recycling system.

This was brought up during 2019’s consultation, with some respondents stating that either some or all the revenue generated should be used to support the waste management industry or wider environmental measures.

Alongside this, there are concerns over the impact the 30% recycled plastic rules on food and drink manufacturers.

plastic tax, plastic tax consultation
Food contact rules in the UK restrict what types of recycled plastic can be used in packaging (Credit: Pixabay)

Speaking after Sunak’s budget, the Food and Drink Federation trade group’s chief executive Ian Wright said: “This will penalise many food and drink producers who are bound by strict food safety rules affecting the packaging they use.

“We urge the government to rethink how money raised through this tax can be used to transform the UK’s recycling infrastructure and will continue to work with them on the details.”

Currently, the UK takes its food contact rules from the European Union, which were last updated in 2011.

The regulation only allows the use of plastic waste that’s been mechanically recycled – where waste materials are recycled into new products without changing its basic structure.