The new plastic tax strategy is designed to encourage UK businesses to further focus on sourcing and utilising recycled plastic materials.
It will not however apply to any existing plastic packaging that contains at least 30% of recycled plastic, or any packaging that is not predominantly made up of plastic. If businesses decide to pass all tax costs onto the individual, financial impact is not considered to be substantial, as currently the costs of plastic packing makes up a very small portion of total cost of goods.
According to Gov.uk, legislation revisions are set to include:
- £200 per tonne for plastics containing less than 30% recycled plastic
- Registration threshold of 10 tonnes
- Exemption for smaller producers
Approximately 20, 000 producers and importers of plastic packaging are expected to be affected by these changes.