HMRC collects £276m from plastic packaging tax in first 12 months
T
he Government collected greater than £270 million from the plastic packaging tax (PPT) throughout its first 12 months, official figures present.
HM Revenue and Customs (HMRC) launched the primary annual replace on the PTT on Thursday.
The tax was launched in April 2022 as a £200 per tonne levy positioned on plastic packaging with lower than 30% recycled content material.
It goals to supply an financial incentive to make use of recycled plastic in packaging in addition to stimulate an uptake in recycling and assortment of plastic waste.
We have to see extra firms utilizing recycled supplies moderately than virgin, as that is good each for the environment and supporting jobs and companies
The HMRC report reveals that receipts for the monetary 12 months of April 2022/23 totalled £276 million.
It was £41m greater than the Treasury predicted after it forecast receipts of £235 million from an estimated 20,000 producers and importers for 2022/2023.
Other statistics launched by HMRC present that 4,142 companies had registered to the PPT as of August 8 2023.
Of the entire plastic packaging manufactured in and imported into the UK in 2022/23, 39% was declared as taxable below the PPT, HMRC stated.
An extra 40% was declared as packaging with 30% or extra recycled plastic, and 21% as both exported, meant for export or transformed.
Of the entire plastic packaging declared, 52% was manufactured within the UK and 48% was imported into the UK.
The tax was raised to £210.82 per tonne as of April 1 2023.
Bosses within the recycling sector welcomed the replace however known as for the Government to do extra to speed up the transition in the direction of a round financial system.
Stuart Foster, chief govt of Recoup, a charity which offers steering on plastics recycling, stated the Government must be ringfencing the cash to develop recycling and round financial system methods.
He stated: “It seems crazy that money raised through a tax that has been designed to encourage the use of recycled content in plastic packaging could not, at least in part, be used to help stimulate the very markets it is trying to develop and support recycled content verification systems.”
Mr Foster stated the usual response to the argument is “this is not how taxes work” however argued that the PPT was launched as an environmental tax to galvanise the provision of recycled plastic and to incentivise corporations to make use of it.
“Allocating even some of the many millions collected to help develop systems would accelerate this development and achieve its aims,” he stated.
Meanwhile, Paul Sanderson, chief govt of the Recycling Association commerce physique, stated the tax must be a part of the general rollout of Extended Producer Responsibility, a scheme that may guarantee producers pay the price of recycling their packaging, which has been deferred by the Government.
The report demonstrates the constructive progress the trade has made with 40% of plastic packaging exempt from the levy as a result of it was manufactured with over 30% recycled content material
He stated PPT is “doing its job” however 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 materials rather than virgin, as this is good both for our environment and supporting jobs and businesses.
“The plastic packaging tax should also be part of the overall rollout of Extended Producer Responsibility and consistency of collections, and it is disappointing that these have been delayed by the Government.
“We need to get on with rolling out these programmes that will make it easier for people to recycle at home, while also building a much stronger recycling industry.”
Meanwhile, Patrick Brighty, recycling coverage adviser at Environmental Services Association, stated: “The publication of this data underpins how (the PPT) has provided an important demand-side measure to support plastics recycling.
“However, the data also underlines that, with oil prices having fallen, too many producers are opting to use new plastics in their packaging instead of recycled content.
“What’s more, as the UK introduces mandatory collection of a wider variety of plastic packaging materials through the Government’s forthcoming Collection and Packaging Reforms, the PPT at its current level will fall short.
“Government must therefore look to apply a long-term escalator to the PPT – increasing both the tax rate and the minimum recycled content threshold over time.”
Steve Gough, chief govt at environmental compliance scheme Valpak, stated: “The inaugural report on PPT shines a useful spotlight 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 demonstrates the positive progress the industry has made with 40% of plastic packaging exempt from the levy because it was manufactured with over 30% recycled content.
“With over a year since the tax was introduced as well as further innovation and investment in long-term sustainable packaging solutions, we hope to see further progress over the coming years as we accelerate the transition to a circular economy.”