There is a ‘de minimis’ for those producers who import/manufacture less than 10 tonnes of plastic packaging in a given year.
There are three categories of packaging that are not chargeable for the tax by law. These are where the packaging function is secondary to the storage function, where packaging is integral to the product, and packaging that is designed primarily for the presentation of goods.
In addition, there are four explicit exemptions for the tax - plastic packaging that is manufactured for use as immediate medicinal packaging; transport packaging used on imported goods; packaging used as aircraft, ship, or rail stores; components that are permanently designated for use other than a packaging use; and exported packaging.
Government has also released further guidance for businesses impacted by the plastic packaging tax, covering key definitions on what plastic packaging is and is not chargeable for the tax, about registration, record keeping and how to access further help and support:
It is important that you stay abreast of the latest updates from government as they will directly impact your business, from the official consultation responses to the draft and implemented legislation. Being fully informed means you can ensure your wider team not only know the impacts to expect, they can respond proactively sooner. We inform our members of important milestones and updates and we always publish the latest news on our website.
The plastic packaging tax will require much higher levels of data reporting than the current packaging compliance requirements. You don't need to wait until the tax is implemented to start this. By collecting this level of detail now, you will achieve full transparency of the potential impact on your business and you will be able to efficiently comply when the tax comes into force. Our team can get you started with this requirement now, contact us to find out how.
Once you have control of your data, you can model your costs to assess the full impact of the plastic packaging tax before it comes into force. Our team are on hand to enable you to do this with the minimum of fuss, contact us to find out more.
The main driver of the plastic packaging tax is to incentivise better material use and increase the amount of recycled plastic used in packaging placed on the market. With full control of your data you can start to take strategic decisions about how to reduce the environmental impact of your plastic packaging and your plastic packaging tax costs. Our team are again on hand to help you do this, contact us to find out more.
We are developing further services to support our members with the future requirements of the tax and are working with government and industry to seek further clarification on the mechanics and requirements of the tax. We will continue to offer guidance as legislation is updated and we will let our members know what further support we will provide in the future.