February 8, 2023

Market and Financial News

Market and Financial News Aggregator

Time to get serious about reducing, reusing and recycling

2 min read

In line with the current focus on sustainability, the Government introduced a new tax on plastic packaging (“PPT”) from 1 April 2022.

In a clear attempt to incentivise businesses to import and manufacture recycled plastics, PPT will apply at a rate of £200/tonne on plastic packaging with less than 30% recycled plastic.  The tax kicks in at a threshold of 10 tonnes per annum: if you manufacture or import plastic packaging or pack goods into plastic in the UK, then your business will be within the scope of the tax if it does not meet the above criteria.

‘Plastic’ is defined widely and includes biodegradable, compostable and oxo-degradable plastics.

What do businesses need to do?

Establish whether your plastic packaging is within scope

In the vast majority of cases, it will be clear whether or not an item is plastic packaging, but remember that the definition is broad and so it is helpful to check the HMRC flowchart and guidance to assist with this – see: https://www.fdf.org.uk/globalassets/resources/public/general/ptf-060-21-a1.pdf.

For example, packaging that is integral to the goods is exempt from the tax because the packaging is necessary to enable the customer to use the goods.  Items such as water cartridge filters or tea bags fall into this category.

There are several other situations where exemptions are granted. Some of these are available as tax credits if they can be proved later (e.g. the plastic is exported or converted into a new component). As a result, import/export and logistics companies, in particular, may be able to significantly reduce their exposure with the right recording processes.

Register for PPT

Businesses that have imported or manufactured 10 tonnes or more of finished plastic packaging since 1 April 2022 or that expect to import or manufacture 10 tonnes or more of finished plastic packaging in the next 30 days must register for PPT at the earliest date possible.

If you do not meet the threshold on either of these tests, you…

Cathy Bryant

2022-06-01 00:21:19

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator

Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.