23 August 2021

Plastic Packaging Tax Consultation

The new tax is planned for introduction in April 2022. The HMRC consultation on stage two of the legislation closed on the 17th August. BPIF Labels and BPIF Cartons has entered a response to HMRC on behalf of the UK Label and Carton Industry and we include a copy. 

You may be aware that the information released to date from the Government and HMRC has led to some confusion about how, where and when the proposed tax will be collected. At this stage it is not clear if the tax will be collected only at first import or manufacture, or stage collected throughout the supply chain/manufacturing process. With each company in the process having to account for report and/or pay additional tax. You will see different views on this expressed across the packaging sector. We have asked for clarification on that.

Currently, HMRC is regarding printing as a significant modification, we do not believe this should be the case as it does not add to or alter the plastic element and does not have any impact on the proposed goals of the tax. Including printing as a significant modification will create confusion, complication and cost to collecting the tax. We have asked for printing to be removed as a significant modification.

Clearly, our industry will be impacted by the new tax and companies will have to be able to demonstrate their status in relation to the tax, but we feel it is essential that the process is clear and the costs of administration are minimised.

We will publish any replies or new information as and when it is received.

Click here to view BPIF Labels response. 

Click here to view BPIF Cartons response.