Plastic restriction and prohibition have long become important measures in the process of promoting sustainable development all over the world. As early as January 1 this year, in order to restrict plastic products, the EU has begun to levy a “plastic packaging tax”. Disposable plastic packaging shall be taxed at the tax rate of 0.8 euro (about 6.4 yuan) per kilogram.

The UK followed closely with the release of a new tax – plastic packaging tax, which will be applicable to enterprises manufacturing or importing some finished plastic packaging materials, including British and non British enterprises / organizations. It will take effect from April 1, 2022.

The new tax law will have a significant impact on a wide range of industries, including (but not limited to) manufacturing, consumer goods, retail, food and beverage, pharmaceutical and cosmetics. Affected by this, Tesco, Asda and other online shopping platforms and large supermarkets have recently removed a large number of plastic products.

The UK government has not finally confirmed whether the implementation of the tax law will proceed as planned, but the main provisions required for the promulgation of the tax law are ready, and further legislation is expected soon.

According to the resolution, British plastic packaging manufacturers, plastic packaging importers, commercial customers of plastic packaging manufacturers and importers, and consumers who buy plastic packaging goods in the UK are obliged to pay.

However, producers and importers of a small number of plastic packaging will be exempted from tax to reduce the disproportionate administrative burden compared with the tax payable.

If the goods sold and / or produced use a large amount of plastic packaging on the way to consumers, it is likely to be affected by the new tax. For cross-border sellers, even if they are a multinational company not manufactured in the UK, they may need to pay / register this tax as long as they bring packaged goods into the UK.

All enterprises manufacturing or importing plastic packaging must keep records of the packaging they manufacture or import, so that enterprises can prove to HMRC whether they need to register the tax.

The PPT will take effect on April 1, 2022, and the portal for HMRC to register and pay the PPT is expected to be available on April 1, 2022, the tax effective date. I hope relevant enterprises can make adjustments as soon as possible to prepare for the arrival of plastic packaging tax.