The UK Plastic Packaging Tax (PPT) is one of the clearest financial reasons to rethink your packaging. If you manufacture or import plastic packaging, it can add a meaningful cost per tonne. Here's how it works and how to stay on the right side of it.
What the tax is
PPT applies to plastic packaging produced in, or imported into, the UK that contains less than 30% recycled plastic. It's charged per tonne, and the rate is reviewed and typically increased each year, so always check the current HMRC figure.
It's designed to make recycled-content plastic the cheaper choice and to drive demand for recycled material.
Who pays it
The tax falls on UK manufacturers and importers of plastic packaging once they pass the registration threshold (10 tonnes of plastic packaging over a 12-month period). Even below the threshold you may have record-keeping duties.
In practice the cost often flows down the supply chain, so it affects the price foodservice buyers pay even if they aren't the registered party.
How to reduce or avoid it
Switch problem plastics to fibre-based packaging: kraft, corrugated, bagasse and paper are outside the scope of PPT entirely.
Where you genuinely need plastic (clear rigid containers, for example), choose options with at least 30% recycled content (rPET), which are exempt from the charge.
Right-size your packaging to use less material overall. Smaller, better-fitting items cost less and waste less.
What to do next
Audit your highest-volume plastic lines first, since that's where the tax and savings are largest. Ask your supplier which of your items are in scope and what fibre-based or recycled-content alternatives exist.
Keeping evidence of recycled content and material types on file makes compliance straightforward.