Plastic Packaging Tax Implications for Waste Processors & Recyclers
To tackle the problem, the government has introduced a plastic packaging tax policy, which will come into effect from April 2022. In this blog, we’ll explain what the policy is and the implications it could potentially have for waste handlers in the UK.
- What Is the Plastic Packaging Tax Policy?
- What Does It Mean for Local Authority Recycling?
What Is the Plastic Packaging Tax Policy?
The tax provides a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will ultimately create greater demand for this material. The policy will hopefully stimulate increased levels of recycling and the collection of plastic waste, diverting it from landfills or incarceration.
The tax rate will be £200 per metric tonne of plastic packaging. It’s important to know that the tax will only apply to plastic packaging manufactured in or imported into the UK that doesn’t contain at least 30% recycled plastic.
Four types of packaging components are exempt from the tax, regardless of how much recycled plastic they contain. These are:
- Plastic packaging manufactured or imported for use in the immediate packaging of a medicinal product.
- Transport packaging used on imported goods.
- Packaging used in aircraft, ship and rail stores.
- Components permanently designated or set aside for use other than packaging use.
As more responsibility is put on the end-user when managing their plastic packaging waste, it’s hoped that more businesses will embrace recycling initiatives and become more proactive in managing the collection of their waste.
So, what does this mean for waste handlers?
What Does It Mean for UK Processors & Recyclers?
Since April 2020, many businesses have been facing increased tax implications for managing their waste. This is because the landfill tax policy was raised from £91.35/tonne to £94.15/tonne, which is a pretty significant increase in the grand scheme of things.
This tax has been rising for several years. With the plastic packaging tax policy also being introduced, businesses will need to think more carefully about how they deal with their waste.
Demand for the recycling of plastic is expected to rise for waste handlers, this could either be in the form of increased collections of plastic, or providing plastic recycling solutions on site – such as balers.
Having the right machinery in place will be vital for dealing with increased demand. Waste machinery, such as balers, can provide waste handlers with the solution to recycle plastic and other types of waste alike.
Is your business prepared for the influx of plastic waste which is likely to be delivered to your waste centres? If not, working with a partner like Greenbank could make a difference.
To find out more about our plastic waste solutions, the benefits they can offer and also the support we can provide, contact us.