Directly involved in the production of plastic packaging, manufacturers will need to adapt to the changes to comply with the upcoming rate increase.
Businesses importing plastic packaging into the UK will face adjustments to align with the new tax rate, impacting their cost structures and pricing strategies.
Entities relying on plastic packaging for their products will witness the ripple effects, with the potential to have influence over their operational costs.
Those purchasing goods that are inside plastic packaging will likely experience changes in the pricing of their products and, following this contribute to broader environmental goals.
As outlined in the Autumn statement, the government is set to legislate the Plastic Packaging Tax rate increase in the Autumn Finance Bill 2023. This adjustment, aligning with the Consumer Price Index (CPI) is scheduled to take effect in April 2024.
The Plastic Packaging Tax was introduced on April 1st 2022, as a part of the Resources and Waste strategy, Plastic Packaging Tax aligns with the government’s commitment to eliminating avoidable plastic waste by 2042. The tax serves as a crucial element encouraging the use of recycled plastic, thereby reducing reliance on incineration and landfill.
Come April 1st 2024, the increased Plastic Packaging Tax rate will apply to all plastic packaging manufactured in the UK or imported into the country.
As these policy changes unfold, stakeholders across the plastic packaging supply chain need to stay informed and proactive, ensuring a smooth transition towards a more sustainable and economically viable future.
