13 August 2021

Plastic Packaging Tax

The UK government will introduce a Plastic Packaging Tax (PPT) in April 2022. The primary legislation for this has already been passed and the Government has just published further guidance to businesses and announced a consultation period on secondary legislation which runs from the 20th July to the 17th August. It now appears this legislation will impact the label industry as "printing" has been classed as a substantial modification that will trigger the tax, and it therefore is essential businesses prepare for the introduction of the tax. It will be important for businesses to keep sound records to be able to comply with the tax, make payments, or prove they are not liable for the tax.

BPIF Labels is taking the lead to inform, educate and support members with how this legislation will affect the sector, and impact on a business’s operations, financials and administrative processes. Raising awareness of PPT and lobbying on the industries behalf is key to understanding the future of the industry and ensuring that your business can be proactive when it comes to potential ‘business changing’ legislation.

BPIF Labels aims to:

Lobbying 

• BPIF Labels is actively engaging with HMRC and the Government and raising awareness on the sector and industries views and concerns. Through consultaion BPIF Labels are challenging aspects of the proposed tax that do not seem to be in keeping with the stated goals and which would impose unecessary cost and administrative burden on the industry

Support 

• Members with preparing for PPT and ensure they are ready for implementation. 
• Provide avenues for business in the labels sector to discuss issues, concerns and solutions. 

Information 

• Updates on the legislation will be shared. 
• Guidance and best practice will be provided to ensure the legislation is understood and adhered to. 

Advice 

• Provided through roundtables, webinars and documentation. 

BPIF Labels held a roundtable on the 5th August which allowed members to discuss how PPT may impact them, what needs to be considered and what support is required, helping to form BPIF Labels' response to HMRC for the consultation on the secondary legislation.

Key self adhesvie laminate suppliers who serve the UK Industry are being asked to engage in the discussions and make an active contribution to understanding the implications of the new tax. Their assistance will be essential in making sure the information needed to administer the tax is made available.