Jubb UK Plastic Packaging Tax PPT.
The Plastic Packaging Tax (PPT)was introduced in law as part of the Finance Act 2021, the PPT aims to incentivise businesses to use more recycled plastic within packaging and to stimulate increased levels of recycling within the UK.
The Plastic Packaging Tax PPT will come into effect as of the 1st April 2022. The intention of the tax is to provide an incentive to encouraging the use of plastic packaging which contains a minimum of 30% recycled material. This PPT will apply to any plastic packaging items manufactured in the UK or imported into the UK which do not contain a minimum of 30% (PCR) recycled plastic.
What are the explanations of plastic packaging being used to define a product liable for the PPT? Plastic packaging is defined in the draft legislation as packaging that is predominantly plastic by weight.
The PPT is applied by the weight of the product/container at £200 per tonne. (£0.0002 per gram) i.e £0.0002 x the container weight. The PPT will be an additional cost applied to us the manufacturer as we are liable for the PPT, therefore this will be incorporated into calculations on pricing and passed onto our customers as a Tax, shown as PPT, the unit price will include the PPT with the actual amount of PPT being paid shown on the line below and VAT applied to the total.
We would just like to reiterate that the PPT figure is not related to the cost of the manufacturing process of the product/container we produce in any way, this is an additional Tax being applied by the Government and collected by HMRC.
We will be fully compliant with all the aspects of the plastic packaging tax from the 1st of April 2022 as the Government guidelines specifies.