The Government has announced its 2018 Budget Brief that will introduce a new tax on produced or imported plastic packaging which doesn’t include at least 30% recycled content.
The new tax will be introduced on plastic packaging from 1 April 2022. Subject to consultation, this will mean that any business that produces or imports plastic packaging that doesn’t contain at least 30% recycled content will have to pay a tax.
The Government has announced that businesses will have until April 2022 to adapt their processes before the introduction of the tax. This will give them time to adjust their behaviour and manage any costs they will face whilst ensuring action is still taken to tackle this important environmental issue.
The new tax will work hand in hand with a reformed Packaging Producer Responsibility System. Plans will be set out later this year to reform the system to make businesses who make and use packaging, including plastic, more responsible for the clean-up and recycling cost of that packaging.