Key Facts

• The report must be published before April 1, 2023.
• The review should consider impacts on plastic recycling rates and volumes used in the UK.
• Reviews are required within six months after passing the Act and annually thereafter.
• More than 2.2 million tonnes of plastic packaging are manufactured in the UK each year.
• The PPT will be charged at a rate of £200 per metric tonne of chargeable plastic packaging.
• Expected revenue from the tax ranges from £210 million to £235 million a year between 2022-23 and 2025-26.
• The new clause seeks to look at different types of plastic and their recycling scope.
• PET can be commonly and easily recycled up to 100% compared to polypropylene which is more difficult.
• Brands such as Kraft Heinz have committed to making 100% of packaging recyclable or compostable by 2025.
• The £200 per tonne levy might not be viable for businesses during low oil prices.
• Some experts suggest that plastics recycling is unviable if the oil price is under £65 a barrel.
• The UK uses an estimated 5 billion tonnes of plastic every year.
• Nearly half of this plastic is used for packaging, with 67% of waste coming from packaging.
• Total plastic waste generation could increase to about 6.3 million tonnes by 2030 according to a WWF report.
• The amendment aims for the Chancellor to conduct a review within six months.
• The review must estimate impacts on plastic packaging tax revenue, recycled material levels, and reusability/recyclability of packaging.
• Proposes increasing the 30% threshold by 5% annually and varying it based on packaging type.
• The UK aims for an average of 30% recycled content across all plastic packaging by 2025.
• Amendment 12 proposes an escalator to increase recycled content over time.
• Green Alliance warns against gaming and switching between polymers.
• Consultation with businesses and stakeholders is required for verification processes.
• Clause 48(3) exempts multi-layer materials from the tax, leading to concern about increased use of difficult-to-recycle packaging.
• Clauses 47 to 50 define key terms for the plastic packaging tax.
• The minimum recycled content threshold is set at 30% and applies after the last substantial modification.
• Clause 48 defines a 'packaging component'.
• Clause 49 defines key terms related to plastic and recycled plastic.
• A £200 per tonne rate applies for packaging with less than 30% recycled content.
• Clauses 51 to 53 provide deferral of Plastic Packaging Tax (PPT) and tax credits for exported packaging.
• Clause 51 exempts plastic packaging intended for export within 12 months from PPT.
• Exported packaging must always have been intended for export, not used in transport packaging.
• Clause 52 exempts transport packaging used to import goods to the UK due to administrative challenges.
• Clause 52 also includes exemptions for aircraft, ship and train stores as defined under section 57 of the Customs and Excise Management Act 1979.
• Clause 52 sets out a narrow exemption for plastic packaging used in the immediate packaging of licensed human medicines due to testing requirements.
• The plastic packaging tax (PPT) applies to UK manufacturers of plastic packaging and importers.
• Businesses manufacturing or importing less than 10 tonnes of plastic packaging are exempt.
• Approximately 20,000 manufacturers and importers will be affected by the PPT.
• Clause 60 - Measurement of weight etc.
• Clause 61 stand part.
• Schedule 10 be the Tenth schedule to the Bill.
• Clauses 62, 63, 64, and subsequent clauses up to 67 stand part.
• Gary Streeter refers to upcoming amendments for discussion.
• He anticipates addressing the need for full consultations with relevant parties before making regulations.
• Proper parliamentary scrutiny of all regulations is highlighted as important.
• Clause enables HMRC to require non-resident taxpayers to appoint UK tax representatives.
• Regulations may include provisions on notification of being a non-resident taxpayer and naming representatives on the register.
• Chartered Institute of Taxation suggests considering exceptions for compliant businesses or those with international accreditations.
• Clause 70 allows business adjustments in contracts regarding the plastic packaging tax.
• Clause 71 and schedule 13 enable groups of companies to report and account for the tax as a single body with joint liability.
• Clauses 72 and 73 prevent businesses from artificially splitting to avoid paying the plastic packaging tax.
• Clauses deal with business changes due to ownership transfer, death, incapacity or insolvency.
• Clause 76 outlines tax treatment for imports from and exports to the Isle of Man.
• Clauses 77 to 81 set out criminal offences related to fraudulent evasion of plastic packaging tax (PPT) and penalties.
• Amendment 22 seeks to make all regulations in part 2 of the Bill subject to the affirmative procedure.
• Amendment 21 mandates consultation with industry representatives, environmental NGOs, and other relevant organisations on all regulations under the plastic packaging tax.
• The Government has consulted and continues to consult with stakeholders regarding the plastic packaging tax.