Technological watch
Plastic Packaging Tax on track to exceed HMRC targets
HMRC data this morning reveals that the Plastic Packaging Tax (PPT) has raised £208 million in the first three quarters of the scheme. Experts have warned it's a sign that progress on plastics circularity is lagging. × Kamira Shutterstock
254316448 LONDON,UK - FEBRUARY 11, 2015 : Dice and token next to the SUPER TAX space in a Monopoly game board
Quarterly data shows that receipts totalled £72 million and then £70 million through first two quarters of recognised receipts. A further £66 million was raised by the Chancellor of the Exchequer through the levy in the third quarter.
If the current rate of tax is sustained through the final quarter, receipts would total around £277 million, substantially above the £235 million target that HMRC initially estimated the tax would generate.
Steve Gough, Chief Executive Officer at Valpak, a leading provider of environmental compliance and part of Reconomy Group, commented: “The government’s new Plastic Packaging Tax was designed to stimulate a shift from the production and use of virgin plastics to an increasingly high proportion of recycled plastic.
“That the level of tax paid has surpassed government estimates should act as a warning that we have a long way to go on improving the circularity of plastic packaging. There is a clear economic incentive to increase recycled plastic packaging production in this country with growing demand for these more sustainable materials, particularly given the majority of this demand is currently being serviced from abroad.
“On a business level, increasing numbers are becoming aware of their responsibilities around packaging compliance. Companies need to urgently put in place in strategies around plastic packaging that not only meet regulatory demands – now and in the future – but also continue the drive to a circular economy.
“Alongside the financial nudge from this tax and building on the excellent work already achieved in reducing single-use materials, we hope to see further progress in the production and use of recycled plastic packaging.”
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254316448 LONDON,UK - FEBRUARY 11, 2015 : Dice and token next to the SUPER TAX space in a Monopoly game board
Quarterly data shows that receipts totalled £72 million and then £70 million through first two quarters of recognised receipts. A further £66 million was raised by the Chancellor of the Exchequer through the levy in the third quarter.
If the current rate of tax is sustained through the final quarter, receipts would total around £277 million, substantially above the £235 million target that HMRC initially estimated the tax would generate.
Steve Gough, Chief Executive Officer at Valpak, a leading provider of environmental compliance and part of Reconomy Group, commented: “The government’s new Plastic Packaging Tax was designed to stimulate a shift from the production and use of virgin plastics to an increasingly high proportion of recycled plastic.
“That the level of tax paid has surpassed government estimates should act as a warning that we have a long way to go on improving the circularity of plastic packaging. There is a clear economic incentive to increase recycled plastic packaging production in this country with growing demand for these more sustainable materials, particularly given the majority of this demand is currently being serviced from abroad.
“On a business level, increasing numbers are becoming aware of their responsibilities around packaging compliance. Companies need to urgently put in place in strategies around plastic packaging that not only meet regulatory demands – now and in the future – but also continue the drive to a circular economy.
“Alongside the financial nudge from this tax and building on the excellent work already achieved in reducing single-use materials, we hope to see further progress in the production and use of recycled plastic packaging.”
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