Government Official figures show that more than £270 million was collected from the Plastic Packaging Tax (PPT) during its first year.

HM Revenue and Customs (HMRC) released the first annual update on PTT on Thursday.

The tax was introduced in April 2022 as a £200 per tonne levy on plastic packaging with less than 30% recycled content.

It aims to provide economic incentives for using recycled plastics in packaging as well as encourage recycling and collection of plastic waste.



We need to see more companies using recycled materials instead of virgin materials, as it is both good for our environment and supporting jobs and businesses.

Paul Sanderson, Recycling Association

HMRC The report shows receipts for the April 2022/23 financial year totaled £276 million.

was £41m more than treasury The forecast comes after forecasting £235 million to be realized from an estimated 20,000 manufacturers and importers for 2022/2023.

Other figures released by HMRC show that as of 8 August 2023, 4,142 businesses had registered with the PPT.

HMRC said that 39% of total plastic packaging manufactured and imported into the UK in 2022/23 was declared taxable under the PPT.

An additional 40% were declared as packaging with 30% or more recycled plastic, and 21% were either imported, for export or converted.

Of the total plastic packaging declared, 52% was manufactured in the UK and 48% was imported into the UK.

The tax was increased to £210.82 per tonne until 1 April 2023.

Bosses in the recycling sector welcomed the update but called on the government to do more to accelerate the transition towards a circular economy.

Stuart Foster, chief executive of Recop, a charity that provides guidance on plastics recycling, said the government should fund recycling and develop circular economy systems.

He added: “It seems insane that the money raised through a tax designed to encourage the use of recycled materials in plastic packaging has not been used at least partly to help encourage those markets.” He is trying to develop and support the Recycled Materials Verification System.

Mr Foster said the standard response to the argument is that “taxes don’t work that way” but argued that the PPT should be replaced by an environmental tax to increase the supply of recycled plastic and encourage firms to use it. was presented as

“Allocating even some of the millions collected to help develop the system will accelerate this development and achieve its goals,” he added.

Meanwhile, Chief Executive Paul Sanderson recycling union The trade body said the tax should be part of the overall implementation of the Extended Producer Responsibility, a scheme that would ensure manufacturers pay the cost of recycling their packaging, which has been deferred by the government.



The report shows that the industry has made positive progress by exempting 40% of plastic packaging from the levy because it was manufactured with more than 30% recycled content.

Steve Gough, Walpak

He said PPT is “doing its job” but added: “Markets for recycled plastics are challenging at the moment and there is a lack of demand.

“We need to see more companies using recycled content instead of virgin, as it is both good for our environment and supporting jobs and businesses.

“The plastic packaging tax should also be part of an overall rollout of expanded producer responsibility and sustainability of collection, and it is disappointing that this has been delayed by the government.

“We need to advance these programs that will make it easier for people to recycle at home, while also building a more robust recycling industry.”

Meanwhile, Patrick Brighty, recycling policy advisor environmental service associationsaid: “The publication of this data highlights how the (PPT) has provided an important demand-side measure to support plastics recycling.

“However, the data also underlines that, with oil prices falling, many producers are opting to use new plastics in their packaging instead of recycled materials.

“Furthermore, PPT will reduce to its current level as soon as the UK introduces mandatory collection of a wider variety of plastic packaging materials through the government’s upcoming collection and packaging reforms.

“The government should therefore consider implementing a long-term escalator on PPT – raising both the tax rate and the minimum recycled content limit over time.”

Steve Gough, chief executive of environmental compliance scheme Valpak, said: “The inaugural report on the PPT sheds a useful light on the current state of the plastic packaging market such as the extent to which plastic packaging is imported into the UK.

“The report also shows that the industry has made positive progress by exempting 40% of plastic packaging from the levy as long as it was manufactured with more than 30% recycled content.

“With more than a year since the tax came into force, as well as further innovation and investment in sustainable packaging solutions, we expect to see further progress in the coming years as we accelerate the transition to a circular economy “

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