UK Plastic Packaging Tax Evaluation and Certification Consultation

• •The Plastic Packaging Tax encourages recycled plastic use but has seen declining receipts.
• •A consultation is underway to consider certification for mechanically recycled plastic packaging.
• •The evaluation shows a positive impact on business practices but highlights uneven responses across firms.

The UK government evaluated the Plastic Packaging Tax (PPT), introduced in April 2022, which incentivizes the use of recycled plastic in packaging. The evaluation indicates a moderately positive impact on business behavior, with an increase in packaging meeting the 30% recycled content threshold. However, PPT receipts have declined, suggesting businesses may have adjusted their practices to minimize tax liability. Concurrently, a consultation was launched to explore potential certification for mechanically recycled plastic packaging to address concerns over fraudulent recycled content claims. This consultation seeks industry feedback on the introduction of mandatory certification for compliance and transparency. The government aims to enhance the effectiveness of the PPT and support the transition to a circular economy.