UK announces introduction of plastic packaging tax

UK announces introduction of plastic packaging tax

As part of the UK’s Budget 2020 (the first under Boris Johnson’s government), the government has announced the introduction of a tax on plastic packaging containing less than 30% recycled content.

The tax will come into force in April 2022 and will be set at £200 per tonne.

Chancellor Rishi Sunak has stated that the tax “will increase the use of recycled plastic in packaging by 40% – equal to carbon savings of nearly 200,000 tonnes.”

Elsewhere, the Treasury announced £700,000 to develop IT capability to administer the future Extended Producer Responsibility scheme for packaging.

The chancellor also unveiled plans to remove the tax relief on ‘polluting’ red diesel – meaning an increase in costs for many using heavy machinery in the waste and recycling sector.

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