Pan liners are common in hospitality cooking and can be made of various plastic materials from heat-resistant PE to Teflon. Designed to protect pans from burning and excessive dirt whilst in use, pan liners are being classified by HMRC as protective packaging and as such will be included in the scope of the Plastic Packaging Tax, even though they do not perform a packaging function, and prices will rise accordingly from the introduction of the tax in April.
Pan liners ensure longer life as well as save on labour costs and time spent cleaning. Additional functions include water and energy savings and ensuring some foods are Kosha and/or Halal.
The Foodservice Packaging Association (FPA) conducted a survey with responses coming from non-members in hospitality in answer to the question ‘Is a pan liner packaging?’. The survey concluded that 92 per cent disagreed with HMRC’s definition.
HMRC has granted an exemption for silage wrap on the grounds that ‘The intention of this exemption is to exclude items from the tax which meet the definition of a packaging component but are manufactured or imported for a different primary purpose’. Pan liners fit this description, but HMRC still maintains that pan liners are packaging.
An HMRC statement read: ‘Our view is that these meet the definition of packaging [and] fall under a single use product designed to be used by a consumer or user in performing one or more of the following functions in respect of goods or waste: containment, protection, handling, presentation and delivery.’
FPA Executive Director Martin Kersh said: “Many in hospitality won’t be aware pan liners are included in the scope of the tax, and some may not even be aware of how the tax will increase their costs. Packaging is designed to protect its contents. However, the role of pan liners is to protect pans – a completely different function from packaging. The Exchequer Secretary, Helen Whately MP, has been made aware of this anomaly and that it equally meets, if not exceeds, her criteria for exempting silage wrap.”
The FPA is continuing to lobby for an exemption for pan liners.