Plastic Packaging Tax
The Burden of Plastic - Plastic Packaging Tax (PPT)
Many EU countries have already imposed a tax on plastic packaging with the aim of tackling the challenges of climate change and encouraging people and businesses to recycle more plastic. The UK now looks certain to follow suit with the government introducing a new tax on plastic packaging later this year to achieve environmental benefits.
Here we look at the finer details of the new regulations, and what we as producers and consumers of plastic labels now need to do.
What is the new Plastic Packaging Tax?
Plastic Packaging Tax (PPT) is a ‘green tax’ designed to financially incentivise businesses to use recycled plastic in the manufacture of plastic packaging. It only applies to ‘finished’ products.
Whether imported from abroad or manufactured in the UK, plastic packaging that contains less than 30% recycled plastic will be subjected to this new tax. At inkREADible we have already been able to source a recycled Polypropylene label material to offer as an alternative to customers who want recycled labels with a plastic look and feel. This recycled label material called Fasson, is made from 90+99% recycled material and offers good resistance to grease, moisture and UV in the same way a standard plastic label does.
Of course, all the other materials we offer are still available, but we can expect the cost of plastic packaging tax to be passed onto the consumer, this will mean an increase in label costs, yet to be determined.
When does it come into effect?
The tax will take effect from 1 April 2022.
Why is it a good idea?
The challenges of dealing with packaging waste, both now and in the future have made this a focus for our businesses and communities. The aim of PPT is:
to create demand for recycled material
increase recycling and collection of plastic waste
reduce the amount of plastic that ends up in landfill or being incinerated
provide a clear economic incentive for businesses to use recycled plastic material in plastic packaging
Which businesses will be affected?
All industries using plastic will be affected and labels are no exception.
How do I find out more information?
Many small businesses will not be required to register for the tax directly but will feel the effects in price increases for packaging. For more information generally and to assess whether your business will be required to pay PPT, use this link which provides full details https://www.gov.uk/government/publications/introduction-of-plastic-packaging-tax-from-april-2022/introduction-of-plastic-packaging-tax-2021
Recycled Labels
If you would like to find out more about our recycled labels, or other types of sustainable labels, please contact a member of staff who will be happy to talk you through the pros and cons, to help you make the right label choices.
