Plastic Packaging Tax new consultation

A new consultation has been issued regarding the Plastic Packaging Tax that takes effect from 1 April 2022.

The legislation for the tax is included in Finance Act 2021.

Two draft statutory instruments to amend the legislation have been released for consultation: 

1. The Plastic Packaging Tax (Descriptions of Products) Regulations 2021 removes three categories of products from the meaning of a plastic packaging component and adds a further category of products.
2. The Plastic Packaging Tax (General [Substantial modification]) Regulations 2021 sets out the meaning of “substantial modification” in respect of the tax. 

Three categories removed

The first instrument removes from the meaning of plastic packaging component three categories of products which are:

• filled packaging components with a primary storage function,
• packaging components that are an integral part of the good, and
• packaging components designed for re-use in the presentation of goods, which are set aside or designated as such.

One category added

The first instrument also adds a new category of products designed to be suitable for single-use and use by a user or consumer to the definition of a “packaging component”.  

Substantial modification

Section 47 of Finance Act 2021 sets out that a plastic packaging component is chargeable for Plastic Packaging Tax if it contains less than 30% recycled content and is ‘finished’.

A component is finished if it has undergone:

• its last substantial modification, or
• in cases where the last substantial modification happens when the component is packed or filled, its last substantial modification before being packed or filled.

The second instrument gives meaning to the term ‘substantial modification’. 

This consultation closes on 17 August 2021

Find out more about Plastic Packaging Tax and further information for businesses.

Plastic Packaging Tax Webinar

Check out our recent webinar on the new tax where we discuss with industry experts the upcoming proposed changes to understand some of the finer details. 

• Click to read a Q&A summary
• Click here to read Ecosurety FAQ document

Visit our Food & Drink Knowledge Hub for advice and information about the tax and other issues affecting the food and drink sector.