Update on the Plastic Packaging Tax

In 2018, plans were announced for a new tax that would be applied to plastic packaging with less than 30% recycled content. Subject to a consultation, the UK government has now confirmed that the Plastic Packaging Tax will be set at a rate of £200 per tonne and will take effect from April 2022. The tax will apply to plastic packaging which has been manufactured in, or imported into, the UK. The rate of the tax and the 30% recycled threshold will be kept under review to ensure the tax remains effective in increasing the use of recycled plastic.

The government also announced that it will extend the scope to include imported filled plastic packaging and that it will exempt businesses that manufacture or import less than 10 tonnes in a 12-month period.

It is hoped the tax will provide a clear economic incentive for businesses to use recycled material in the production of plastic packaging, which will create greater demand and in turn stimulate increased levels of recycling. As a result, more material will be diverted from landfill and incineration or situations where it can impact habitats or the environment.

Enva is one of the UK’s largest producers of recycled polymers, providing material to a range of packaging manufacturers including those working in the food and clothing sectors. In order to help customers meet their obligations under the new legislation, we are reviewing a series of potential modifications at our processing facility which will significantly increase our range of recycled polymers. 

This will also enable more of the material collected through the company’s recycling services division to be processed in-house, supporting the development of increasingly sustainable supply chains and the circular economy.

For more information on Enva Plastics click here.