The UK government is implementing a Plastic Packaging Tax on all plastic packaging with less than 30% recycled content from 1st April 2022. The tax will be applied to all finished plastic packaging at a rate of £200 per metric tonne. The tax has been implemented to reduce the amount of virgin polymer being introduced into our society and to encourage the introduction of recycled material, in turn encouraging recycling and investment in recycling infrastructure.
HOW IS PLASTIC PACKAGING DEFINED?
Plastic packaging is packaging that is predominantly plastic by weight. It will not apply to any plastic packaging which contains at least 30% recycled plastic, or any packaging which is not predominantly plastic by weight. Imported plastic packaging will be liable to the tax, whether the packaging is unfilled or filled.
HOW MUCH IS THE TAX?
The PPT is charged at a rate of £200 per tonne and applies to any packaging product which consists mostly of plastic by weight, and contains less than 30% recycled plastic.
ARE THERE ANY EXCLUSIONS?
Yes. Medical products, packing used to transport imported goods, and packaging used for stores on international aircraft, ship and rail journeys are all excluded. Products which require plastic as an integral component for operation (such as ink cartridges or inhalers) are also excluded).
HAS ZEUS REGISTERED FOR THE PPT?
Yes, Zeus has complied with all requirements laid out by the new legislation. Zeus confirms that all obligations will be met by the business with respect to paying the required tax on applicable products.
HOW WILL THIS AFFECT MY BUSINESS?
The PPT is charged to manufacturers or importers trading over 10,000kg of plastic packaging. Whilst the tax is not applied directly to customers at point of purchase, the impact of the PPT throughout the supply chain will be reflected in a price increase for any product which is subject to the tax.
WILL ZEUS BE RAISING PRICES?
As a manufacturer utilising plastic in a wide range of products, Zeus is not immune to this new tax and a number of our lines will be impacted by the PPT, resulting in an increase in the cost of these affected products. However, no matter the sector you are operating in, Zeus has a range of ways to help you limit the effects of this new tax on your operations.
WILL I BE ABLE TO SEE WHAT THE PPT IS COSTING ME?
As much as the PPT is only charged to manufacturers or importers, Zeus will highlight to our customers products where the PPT of £200/tonne has been paid on invoices, however the tax will not be shown separately. Please speak with your Zeus representative to give you a breakdown of these products and what impact (if any) you will see due to the PPT.
WHAT IS ZEUS DOING TO HELP CUSTOMERS?
As market leaders, Zeus has spent a number of years working to develop a packaging range to support sustainability and recyclability. We are continually looking to ensure that our product range is fit for the future. Zeus has dedicated New Product Development teams working on sustainable alternatives and have already launched many of these products to market, as well as sourcing complimentary ranges from other key suppliers. Zeus is proud to manufacture and supply a wide range of recycled food service products, water activated tapes, performance wrapping films and many other compostable, recycled, or otherwise sustainably produced alternatives to many of the products that will be affected by the PPT.
By 2025 our aim is for all our products to be 100% circular. This means that we will only use recycled or renewable materials in the production process, and all our products will be completely recyclable or biodegradable after use. We will continue to introduce new innovation to our current range of sustainable products that are in line with our 100% circular mission.
Zeus also has a proven track record working with large clients to streamline their packaging operations to reduce unnecessary waste of raw materials and packaging. Our free five step audit process will help you eliminate inefficiencies in your operation to reduce costs across the board - not just by reducing reliance on affected plastic products!