Globally, efforts to reduce plastic waste and promote recycling are gaining momentum, and sustainability is becoming a significant driver in the demand for increased recycled contents in the packaging and transportation of products.
Almost two years since the introduction of the Plastic Packaging Tax, the government announced a rate increase in line with the Consumer Price Index (CPI), increasing to £217.85 per tonne that will apply to all plastic packaging, containing less than 30% recycled plastic that is manufactured and imported into the UK on and after 1 April 2024.
Plastic Mouldings Northern are leading the way in the industry with 95% of products hitting exemption from Plastic Packaging Tax, and it has never been more important to reuse, recycle and repair, as we spearhead sustainability in the industry through our innovative approach.
Plastic needs to be seen as a dynamic material, and it is through the commitment to responsible usage and recycling initiatives that we can support supply chains to navigate the complexities of plastic in logistics and pave the way for a more sustainable future.
HMRC’s announcement of the tax increase also hinted that further changes could be on the way, in the form of further rate hikes and an increase in the minimum recycled content threshold. This is combined with recent calls from industry experts for the government to escalate the Plastic Packaging Tax, ‘to allow UK brands, manufacturers and recyclers to continue to trade across both UK and European markets without falling behind European Union (EU) legislation.’
The EU is targeting mandatory recycled content, rather than incentives, reaching up to 65% by 2040, and industry experts predict that the current rate in the UK is not high enough to incentivise meaningful change.
The tax on plastic packaging in the UK represents a positive step towards a greener and more sustainable future and sends a clear message to businesses that the government is committed to reducing plastic waste and promoting environmentally friendly practices.
Matthew Whittle, Sales Manager, Plastic Mouldings Northern, said: “Within the company we have a sustainable vision for logistics and the use of returnable plastic packaging solutions are at our core, with the ethos of reuse, recycle and repair where applicable. Finding sustainable packaging solutions looks to be an ever-evolving task as we move into Q2 of 2024 and a hot topic of discussion in the industry that we’ll be following closely.”
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