Commons Sense

House of Commons · Westminster Hall

[Philip Davies in the Chair]

17 October 2023 · 3 other contributors · 3,757 words

Opened by Nigel Mills Con Amber Valley

Responding minister: Gareth Davies

TaxationEnvironment

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Nigel Mills raised concerns about [philip davies in the chair] in Westminster Hall. A government minister responded.

Key points

  • Mr Nigel Mills is concerned about revenue leakage due to non-compliance with plastic packaging tax rules by importers.
  • Mr Mills asks the government for data on audits conducted by HMRC and penalties issued for non-compliance with plastic packaging rules.
  • The Minister states that HMRC has proactively contacted over 2,000 businesses since April of the previous year to help them understand their obligations under the plastic packaging tax.

Key requests to Government

Mr. Mills asks the Minister for data on how many audits HMRC has conducted finding non-compliance with plastic packaging rules and the penalties issued, as well as urging the government to consider further publicising the rules and ensuring industry awareness of compliance requirements.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Nigel Mills Con Amber Valley

Mr. Nigel Mills is concerned about revenue leakage from non-compliance with plastic packaging tax rules by importers. He mentions that HMRC's guidance includes reasonable checks for companies to make, such as price verification and evidence gathering, but questions the extent of audits conducted by HMRC and whether penalties have been issued. Mr. Mills highlights a significant issue where roughly half of all stretch film in the UK is imported, potentially leading to large-scale tax avoidance if enforcement is lacking.

Other contributors (3)
  • James Murray Lab Co-op Ealing North

    Supporting the plastic packaging tax as a tool to tackle plastic pollution, James Murray highlighted concerns about its enforcement on imports. He expressed interest in HMRC's response to ensure a level playing field for UK businesses and noted that industries had not prepared adequately when silage film was unexpectedly added to items caught by the tax, leading to financial strain on farmers. Murray also questioned the Government's approach towards chemical recycling and stressed the need for a clear policy environment to encourage investment in sustainable plastics production in the UK.

  • Mark Pawsey

    Pawsey suggested that the plastic packaging tax should automatically apply to any imports of material used where food contact is involved, citing safety concerns.

  • Steven Bonnar SNP Glasgow North East

    He expressed concern over the low number of businesses registered for the plastic packaging tax, noting only 4,142 out of an expected 20,000 had registered by August. He highlighted issues with importers being exempt from the tax and the environmental risks associated with chemical recycling, advocating for stricter regulations to promote genuine recycling efforts.

Government Response

Gareth Davies

The plastic packaging tax is designed to incentivise businesses to use more recycled plastic in their production. Since its introduction, HMRC has been actively helping businesses understand their obligations and developing an enforcement response to tackle non-compliance. The tax includes a de minimis threshold of 10 tonnes per year to avoid placing disproportionate administrative burdens on small businesses. HMRC has contacted over 2,000 businesses proactively since April last year and conducted 400 interventions, recovering £3 million from non-compliant businesses.

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