Navigating the Upcoming 2024 Plastic Packaging Tax Increase
At Imperial Polythene, we're committed to staying ahead of industry changes and keeping our clients informed about crucial developments that might impact their operations. Recently, the UK government announced updates to the Plastic Packaging Tax rates, set to come into effect from April 1, 2024. As a leading manufacturer and supplier of bespoke polythene bags, we understand the significance of these changes and aim to shed light on how they might affect our clients and the industry at large.
Who is Likely to be Affected?
The Plastic Packaging Tax adjustments will have implications for UK manufacturers of plastic packaging, importers, business customers, and consumers purchasing goods in plastic packaging. It's essential to note that manufacturers and importers handling less than 10 tonnes of plastic packaging per year are exempt from the tax.
Understanding the Measure
The government, as outlined in the policy paper published on November 22, 2023, plans to increase the rate of Plastic Packaging Tax in line with the Consumer Price Index (CPI). This measure is aimed at providing a clear economic incentive for businesses to incorporate recycled plastic into their packaging materials, ultimately stimulating increased levels of recycling and reducing plastic waste sent to landfill or incineration.
Background to the Measure
The Plastic Packaging Tax was initially introduced on April 1, 2022, as part of the government’s Resources and Waste strategy. Its primary objective is to encourage the use of recycled plastic in packaging and divert plastic away from incineration or landfill. The tax aligns with the government's broader ambition to eliminate avoidable plastic waste by 2042.
Detailed Proposal
Starting from April 1, 2024, the new rate will apply to all plastic packaging manufactured in the UK or imported into the UK. The proposed revision will see an increase in the rate from £210.82 per tonne to £217.85 per tonne, in line with CPI.
At Imperial Polythene, we remain dedicated to providing sustainable packaging solutions while keeping our clients informed and equipped for the evolving regulatory landscape. As these changes take effect, we'll continue to collaborate with you to ensure a smooth transition towards a more environmentally conscious future.
