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The new green tax on plastic packaging will take effect in the UK on April 1, 2022. The Plastic Packaging Tax ("PPT") applies to plastic packaging manufactured in the UK or imported into the UK. This will have a significant impact on the retail and consumer supply chains, affecting approximately 20,000 British plastic packaging manufacturers, producers and importers, as well as their commercial customers, logistics companies and online markets.

PPT was introduced in the law as part of the 2021 Finance Act to encourage companies to use more recycled plastics in packaging and stimulate the improvement of recycling levels.

What will be affected by PPT?

The charge for PPT will appear on the chargeable "packaging components":

(i) by (or on behalf of) a person in the course of business produced or imported into the UK; (ii) by weight than any other single substance (for example, metal, glass, cardboard, the weight of which must also be measured) Contains more plastics. In this case, the entire component will be treated as a plastic completely used for PPT purposes; (iii) The recycled plastic content of the plastic used is less than 30%; (iv) Completion – When the component is completed, the PPT will reach Period, this happens when they undergo the last “substantial modification” before packaging or filling.

PPT charges 200 pounds per metric ton for plastic packaging. For PPT, plastic refers to polymer materials that may be added with additives or substances, including bioplastics (for example, biodegradable plastics). There are two main types of plastic packaging prone to PPT:

PPT will be paid in the following ways:

Failure to comply with the relevant PPT requirements will result in penalties, such as record keeping and payment, an initial fixed fine of £500, plus a daily penalty of £40 for continued non-compliance, and interest on late payments. In the case of fraudulent evasion of PPT and misrepresentation and false documents and acts involving such crimes, severe criminal penalties may be imposed.

Are there any exclusions, exemptions or remedies?

Yes, but these are limited. They include:

The secondary legislation and more detailed information on PPT requirements have been released for technical consultation, which began on November 4, 2021 and will end on December 1. In addition, in the autumn statement in October, other technical changes to the main legislation were announced (announced in the fiscal (No. 2) draft bill this month), including administrative measures registered by the PPT Group, which are revised and combined with PPT for HMRC. When to charge the relevant import time, and to ensure that companies that do not have to register for PPT do not have to pay for PPT, and will not be regarded as acting for the purpose of PPT in the course of business.

Although the legislation and HMRC guidelines are still being finalized, affected companies must now start preparing for the PPT. The key action points include:

The original PPT guide has been published by HMRC, and the follow-up guide (November 4 at the latest) is available at: https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packagingtax And https://www.gov.uk/government/publications/get-your-business-ready-for-the-plastic-packaging-tax. Before the legislation is approved by Parliament, HMRC's guidelines may change and will continue to be updated.

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