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 must see extra firms utilizing recycled supplies quite than virgin, as that is good each for our surroundings and supporting jobs and companies
The HMRC report exhibits 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 overall 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, supposed for export or transformed.
Of the overall 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.
The report demonstrates the constructive progress the business has made with 40% of plastic packaging exempt from the levy as a result of it was manufactured with over 30% recycled content material
Paul Sanderson, chief government of the Recycling Association commerce physique, stated the tax must be a part of the general rollout of Extended Producer Responsibility, a scheme that can guarantee producers pay the price of recycling their packaging, which has been deferred by the Government.
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.”
Steve Gough, chief government 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.”