Attention!Plastic packaging tax introduced in UK!

Attention!Plastic packaging tax introduced in UK!
 

Chancellor of the exchequer, Rishi SunaK announced a aims to promote the use of recycled plastic in commodity packaging of tax plan, the plan since April 2022, when the production in the UK or export plastic packaging products to the UK, if its content is less than 30%, the content of recycled plastic in will be effected according to the 300 pounds per ton of tax levy a tax on plastic packaging.Sunak said this would increase the use of recycled plastic in packaging by 40 per cent, equivalent to a reduction in carbon emissions of nearly 200,000 tonnes.Nowadays, it has become a consensus to reduce the use of plastics in industrial production and carry out sustainable development.Many toy companies have taken action, announcing their sustainability plans, improving their manufacturing processes, and developing and using plastic alternatives in packaging and raw materials.So these leading toy brands are well positioned to respond to the UK tax increase.

Which sellers need to be charged?

If you sell and/or produce goods that use a lot of plastic packaging on their way to consumers, it is likely that your business will be affected by the new tax.Cross-border sellers may be subject to the tax if you bring packaged goods into the UK, even if they are multinational companies that do not manufacture in the UK.

How to solve the seller?

The main purpose of the tax law is to encourage businesses to reduce their use of raw plastic: you don't have to pay the tax if your packaging uses 30% or more recycled plastic.

There are many different packaging options available to businesses, however it can be cost-effective to move away from raw plastic.Obviously, this will depend on the products you produce and/or sell, so checking packaging requirements against currently available packaging solutions is an essential task.Retailers can also choose to work less with suppliers that use pure plastic packaging to reduce their burden of the new tax, for example, bags made from 100% recycled polyethylene are already available for market use, and their cost will fall over time.But it could be tricky for food manufacturers because of potential contamination.

If dedicated raw plastics are not available, and there is currently no alternative packaging solution, then perhaps it is time to investigate new packaging solutions that are greener and more cost effective overall.Projects using new materials to develop innovative packaging are likely to be eligible for r&d subsidies or tax breaks, and environmental themes will be protected and promoted regardless of the country.

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