This second consultation was published on 11 March 2020 and was due to run to 20 May. However, the government recognised that many sectors with an interest in this policy have been affected by COVID-19 and wanted to give all stakeholders time to submit their views, so the consultation has been extended. The closing date is now 20 August 2020 (11.45pm) though early responses from stakeholders are encouraged. The consultation document covers 51 pages and is geared towards the commercial sector, though individuals can respond.
Details of the consultation can be found at:
Introduction to the consultation:
1.1 At Budget 2018, the government announced that it will introduce a world leading tax on plastic packaging from April 2022. The tax will encourage the use of recycled plastic instead of new plastic within packaging. It will create greater demand for recycled plastic, and in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.
1.2 This document marks the next stage in the consultation process. So far, the government has:
– Held a Call for Evidence (March 2018) to explore how the tax system or charges could be used to reduce the amount of single-use plastic waste and published a Summary of Responses (August 2018)
– Launched a Consultation seeking views on the initial Plastic Packaging Tax design (February 2019) and published a Summary of Responses (July 2019)
1.3 At Budget 2020, the government announced that Plastic Packaging Tax will apply at a rate of £200 per tonne of plastic packaging which does not contain at least 30% recycled plastic. This will apply to plastic packaging which has been manufactured in, or imported into, the UK. The government will keep the rate of the tax and the 30% recycled plastic threshold under review to ensure that the tax remains effective in increasing the use of recycled plastic.
1.4 At Budget 2020, in response to feedback from the previous consultation, the government announced that it will:
– Extend the scope of Plastic Packaging Tax to imported filled plastic packaging that does not contain at least 30% recycled plastic content, rather than just imports of unfilled plastic packaging
– Exempt businesses that manufacture or import less than 10 tonnes of plastic packaging in a 12 month period from the requirement to pay the tax. This will ensure the administrative burden and cost of collecting the tax are not disproportionate to the environmental harms the tax seeks to address
1.5 The tax will complement the reformed Packaging Producer Responsibility Regulations. These reforms will encourage businesses to design and use plastic packaging that is easier to recycle and discourage the creation of plastic packaging which is difficult to recycle. They will also make businesses responsible for the cost of managing the packaging they place on the market when it becomes waste. These measures, together with the government’s proposals to increase consistency in household recycling collections across local authorities and businesses, will increase the supply of easier-to-recycle plastic. The government believes that tax and regulatory reform together will provide businesses with the right incentives to recognise the impact of their plastic packaging decisions and drive the development and use of more sustainable packaging. The tax and regulatory changes will be delivered as separate measures given the high level of complexity any combined system would bring. However, the government will continue to ensure that the tax complements the reformed packaging regulations.
What is the government consulting on?
1.6 This consultation seeks views on the detailed design, implementation and administration of Plastic Packaging Tax to ensure it best meets the government’s environmental objectives while placing only proportionate burdens on business. Chapters 3 to 8 set out what the government is consulting on and include specific questions on:
a. Chapter 3: The scope of the tax
b. Chapter 4: Liability for the tax
c. Chapter 5: Excluding small operators (de minimis)
d. Chapter 6: Evidence requirements
e. Chapter 7: Exports
f. Chapter 8: Registration, returns and enforcement
1.7 The government is also seeking to refine its assessment of the impact of Plastic Packaging Tax as set out in Chapter 10.
1.8 At Budget 2020, the government announced that Plastic Packaging Tax will be charged at a rate of £200 per tonne where less than 30% recycled plastic is used in packaging. The rate of the tax and the percentage of recycled content are not within the scope of this consultation.