With the global production of plastic materials risen at an alarming 390.7 million metric tons by 2021, it was no wonder that governments around the world started implementing taxes for the plastic produced. United Kingdom was no exception, and on the 1st of April 2022 the Plastic Packaging Tax (PPT) was introduced to the businesses of England, as a motive for recycled plastic in packaging, which would aim to promote recycling and collection of plastic waste.
The PPT
The Plastic Packaging Tax (PPT) is charged when a plastic packaging material is manufactured or imported into the UK and is below the 30% recycled content limit.
For the financial year of 2022 to 2023, the PPT rate was set at £200 per tonne of plastic, while only companies that manufactured or imported at a minimum of 10 tonnes of plastic packaging from that publication date of the PPT were required to enroll.
What We Know Thus Far
Between April of 2022 and March of 2023, the amount of plastic packaging that was subjected to the PPT was 3,502 thousands of tonnes, with around 50% of the amount manufactured in the UK and the rest imported into the country. Moreover, the 3,502 tonnage of plastic mentioned earlier, makes up for 39% of the total plastic packaging manufactured in and imported into the UK for the same time period, with the other 61% being excluded from tax, as it was either exported, intended for export, converted or used for the immediate packaging of medicinal products.
According to the figures presented below, which were provided by government statistics, the imported amount of plastic packaging was significally reduced with each trimester passed, for the first year after the implementation of PPT. What’s interesting, however, is the surprising increase in manufactured plastic packaging during the second trimester of the financial year, along with the fluctuation of the amount during the last two trimesters.
What Can We Expect?
The unpredictability of plastic production during financial year 2022-2023, along with the unavailability of further manufacturing and import data for the years to come, do not provide sufficient information in measuring the influence of Plastic Packaging Tax.
Furthermore, with the staggering revenue of £276 million in just a year and the increase on the tax value from £200 to £210.82 per tonne of plastic for the next financial year, we can only hope that, the amount of money that the UK government has been and continues to collect, will contribute greatly to the circular economy and boost further the use of recycled materials in packaging.
