The UK Government has announced key decisions it has taken for the design of the Plastic Packaging Tax in light of stakeholder responses to the previous consultation in 2019.
The rate of the plastic packaging tax will be £200 per tonne of plastic packaging that contains less than 30% recycled plastic and there will be a 10-tonne annual de-minimis under which businesses will not be required to pay the tax, to ensure the smallest businesses are not disproportionately impacted.
Following the evidence received as part of the consultation in 2019, the tax will be extended to the importation of filled plastic packaging, to maintain the competitiveness of domestic manufacturers and the effectiveness of the tax in increasing use of recycled plastic. The consultation includes details on the design and implementation of the tax, including consideration of an exemption for certain types of medical packaging.
This new consultation provides more information on these announced areas, as well as asking for views on areas of the tax design which have been further refined ahead of the tax commencing in April 2022.
The Welsh Government is keen to encourage key Welsh businesses, individuals, tax advisers, trade and professional bodies and other interested parties to share views and evidence. The next stages of this work will involve gathering evidence and working with key Welsh stakeholders to understand the impact.
The consultation closes at 11:45pm on 20 August 2020.
For further information and to respond to the consultation please visit the GOV.UK website.
Businesses and interested parties who want to respond to the consultation are being encouraged to sign up to a live webinar that will take place on 28 May 2020 from 11:30am to 12:45pm.
The webinar will provide:
- an overview of the tax design
- a chance to discuss key proposals
- a question and answer session for any questions submitted in advance
To sign up for the webinar please email indirecttaxdesign.team@hmrc.gov.uk by 26 May 2020 and include any questions you may have.