September 16, 2024 15:58

The British government has seen a reduction in revenue from the Plastic Packaging Tax, while there has been a modest decline in the use of virgin plastic packaging.
This is the conclusion from the latest report on the Plastic Packaging Tax (PPT), which was introduced in the UK in April 2022 and applies to producers and importers of plastic packaging containing less than 30% recycled material.

According to preliminary data, between the fiscal years 2022-2023 and 2023-2024, tax revenue from the PPT fell  6%, from £285 million to £268 million, due to a reduction in taxable volumes.
The declared volume of imported plastic packaging dropped to 1.32 million tonnes, compared to 1.71 million the previous year. Meanwhile, domestic production fell from 1.74 million tonnes to 1.64 million tonnes.

In total, combining imports and domestic production, 42% of plastic packaging is subject to taxation, although the share of exempt packaging due to recycled content is increasing. Of the remaining 58%, 46% contained 30% or more recycled plastic, 11% was destined for export, and less than 1% was exempt due to its use in pharmaceutical packaging.

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