August 8, 2022

Plastic Packaging Tax: Will the Financial Incentive Assist Encourage Companies to Prioritise the Atmosphere?

plastic packaging

Plastic packaging tax is a type of environmental taxation that got here into impact this yr, on 1 April 2022. To look at whether or not plastic packaging tax will show profitable in creating a requirement for extra sustainable merchandise, professionals ought to take into account the implications of earlier taxations, such because the sugar tax.

In 2018, the federal government launched a levy on smooth drinks that contained greater than 5g of sugar per 100ml. This resulted within the sugar content material of sentimental drinks lowering considerably. In actual fact, in line with a research by the College of Cambridge, households consumed drinks with 10 per cent much less sugar within the first yr that this got here into impact.

This means that the plastic packaging tax will show to be simply as profitable, encouraging producers and importers to cut back the quantity of non-recyclable supplies used. Here’s a nearer examination of the taxation and which firms it’s more likely to have an effect on.

What’s the function of plastic packaging tax?

The UK plastic packaging tax prices firms that manufacture or import packaging that’s made out of lower than 30 per cent recycled plastic. The usual taxation is £200 per tonne of plastic packaging.

This is applicable to all method of plastic packaging, whether or not it’s utilized by firms or shoppers. Plastic packaging used within the provide chain, corresponding to bubble wrap and packaging peanuts, is the same as client single-use plastics, from disposable utensils to espresso cups fabricated from plastic.

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The taxation will cut back the variety of plastic merchandise constituted of pure virgin materials from getting into landfill. It’s going to additionally cut back how a lot is getting used for waste-to-energy incineration and encourage companies to create sustainable options, corresponding to designing progressive beauty containers and recyclable meals packaging.

The purpose of plastic packaging tax: to stop a priceless useful resource ending up in landfills

Plastic packaging tax will incentivise quite a lot of individuals throughout the packaging trade. At the start, producers and importers of plastic packaging exceeding 10 tonnes per yr could face prices.

Along with producers and importers, the taxation can even have an effect on companies that purchase plastic packaging. To keep away from any pointless prices, packaging consumers and new product managers ought to hold a report of their buying historical past and take into account shopping for from firms that favour recycled plastics.

This has the opportunity of creating a requirement for extra plastics constituted of recyclable supplies throughout the trade.

Judit Guerra-Falcon, product sustainability and compliance supervisor at Waddington Europe, a number one producer of inflexible plastic packaging, with product manufacturers together with Eco Mix 100 and Eco Mix Pura ranges, has commented:

“The purpose of the UK Plastic Packaging tax is to offer an financial incentive for enterprise to make use of extra recycled plastics within the manufacturing of packaging. Consequently, assortment ranges of plastic waste will enhance. This will likely assist to stop this priceless materials useful resource ending up in landfills or being incinerated.”

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In actual fact, the taxation is estimated to enhance the demand for sustainable plastic packaging by 40 per cent, saving as a lot as 200,000 tonnes of carbon in 2022 to 2023.

The implications of the plastic packaging tax stay inconclusive, though governmental our bodies will proceed to watch using plastic packaging within the coming months. Nevertheless, the demand for sustainable plastic merchandise is apparent, which means that firms and packaging consumers have the chance to prioritise the atmosphere.

References

https://www.gov.uk/steerage/check-if-you-need-to-register-for-plastic-packaging-tax#:~:textual content=Packagingpercent20shouldpercent20onlypercent20containpercent20recycled,ofpercent20percentC2percentA3200percent20perpercent20tonne

https://www.gov.uk/authorities/publications/introduction-of-plastic-packaging-tax-from-april-2022/introduction-of-plastic-packaging-tax-2021

https://www.gov.uk/steerage/when-you-must-register-for-plastic-packaging-tax

https://www.globalcompliancenews.com/2022/02/07/uk-governments-plastic-packaging-tax-to-take-effect-1-april-2022-180122/

https://theconversation.com/banning-the-promotion-of-soft-drinks-could-be-more-effective-than-a-sugar-tax-177288