How to help customers navigate the Plastics Packaging Tax

It’s clear that the Plastics Packaging Tax will have an impact on the plastics industry – but what about its buyers? Amanda Stokes, UK senior account manager at clear packaging manufacturer HLP Klearfold, gives her account.

As the new plastic packaging tax (PPT) comes into effect, we at HLP Klearfold, the world's largest producer of innovative and environmentally friendly printed plastic packaging, are noticing an influx of customers coming to us with questions about how the tax will affect them.

The Plastic Packaging Tax applies to plastic packaging that has been manufactured or imported into the UK and does not contain at least 30% recycled plastic. It is a step forward in the battle for sustainable packaging and manufacturing, as research shows that plastic packaging currently accounts for almost 70% of plastic waste.

Our customers are representative of the general confusion surrounding the tax, as seen by the 23% rise in online searches for ‘plastic packaging tax guidance’ over the last three months.

Where the confusion is likely to arise

Confusion may arise from businesses trying to establish if the tax applies to them and to what extent. There are many exemptions within the tax and HLP Klearfold recognise that this is an overwhelming time for businesses trying to understand whether they’re subject to paying the levy or not. There could also be confusion over what the tax is going to achieve; the sole purpose is to promote recycled plastic to reduce the amount going to landfill. It is not intended to stop the production or use of plastic as a packaging solution as in many cases it is recognised that plastic is the only viable option; the fantastic properties of plastic were vital in helping to prevent the spread of Covid-19, from face shields to screens

HLP Klearfold’s aim is to not only produce material that exceeds the minimum requirement meaning the tax would not apply to our products but also provide guidance to our wider market, who may not currently be working with us. The tax is welcomed by HLP Klearfold, despite us being a plastic packaging manufacturer: we have been working on our 100% recycled content material for years to ensure we are able to accommodate customers' ever growing desire to care for the planet now and in years to come. Any confusion over who the tax applies to and how it can be avoided can be discussed with our experts and our PPT guide has been designed to be a very simple point of reference. 

What might be subject to change about the tax?

The tax at present is applied at £200 per tonne tax on plastics containing less than 30% recycled content. There are no revisions to change this in the near future however this is likely to be reviewed annually to see how businesses are complying and how successful the tax is performing in its pursuit to promote the recycling of plastic.

HLP Klearfold’s Plastic Packaging Guide

The introduction of the plastic packaging tax is a necessary step towards more sustainable packaging. As with any new tax or regulation, it takes time for businesses to understand what exactly is going to happen and how it will affect them.

HLP Klearfold’s guide uses a bespoke traffic light system which details who will not have to pay the plastic packaging tax (green), who is exempt from paying the tax for a specific reason (amber) and who is eligible to pay the PPT (red) as it comes into effect.

Red - Those who import or produce plastic that does not contain the minimum 30% recycled content, these are predominantly single use plastics ie: bottle tops etc.

Amber - These are businesses who are exempt for a specific reason, for example licensed medicine or where the plastic is an integral part of the product, for example an ink cartridge in a pen.

Green - Those who are already using the required minimum content of 30%; HLP Klearfold’s standard material exceeds this and is 100% recyclable. Businesses who currently import less than 10 tonnes also fall into this category to ensure smaller businesses are not disproportionately hit.

It’s hoped that this guide may also encourage those who are eligible to consider how they can improve their recycled plastic production, in order to avoid the tax and become more sustainable.