Plastics Packaging Tax 2022 Guidance from Trifibre
As the UK introduces a new plastics packaging tax from April 2022, Trifibre wants to reassure all customers that there will be no price increases on products as a result of this tax. Our full range of products are exempt from the plastic packaging tax due to their product classification. Read on to find out more.
The plastics packaging tax is a tax on plastic packaging that is manufactured in or imported into the UK. The tax rate is £200 per tonne. The tax is intended to encourage the use of recycled plastic and to reduce the amount of plastic waste.
Effective from 1st From April 2022, the UK plastic packaging tax (PPT) applies to packaging products containing less than 30% recycled plastic. It is designed to encourage the use of recycled plastic in the manufacture of packaging through financial incentives.
The Plastic Packaging Tax applies to manufacturers and importers of plastic packaging and packaging components who handle 10 tonnes or more of finished plastic packaging over a 12-month period. It is charged at a rate of £200 per tonne.
The type of plastic liable for the tax is polymer, including polymers mixed with other materials. It is the weight of the plastic component compared to the other ingredients that determines whether the plastic packaging tax applies.
How will the plastic packaging tax impact Trifibre customers?
The good news for Trifibre customers is that none of the products we sell contribute towards the 10-tonne threshold of the packaging tax.
This is because our rotational moulded cases, flight cases, foam inserts, polypropylene cases and other products are not eligible for VAT due to their reusable nature and categorisation as storage products.
This means our customers will not see sudden price increases on Trifibre products caused by the plastic packaging tax.
The Plastic Packaging Tax will only impact businesses using single-use packaging in their supply chain or for single-use by the end user or consumer. Examples of applicable packaging include plastic crates, shrink wrap, and most importantly… plastic wine and pint glasses!
Trifibre products are exempt from the plastic packaging tax because they are manufactured from a minimum of 75% recycled plastic.
Our products are exempt from the plastic packaging tax as they are designed for multiple use and, in some cases, the use of plastic is an integral part of the product's function. For example, our flight cases and roto-moulded cases protect the goods within during transportation, such as musical instruments, cameras and lighting, but they are also designed to be used as storage cases when the item is not in use.
Many of our cases are designed to house multiple items and some cases, like our retail and exhibition cases and counters, are even designed to be part of the functioning product itself. As a result, they are not applicable to the packaging tax.
Which cases would you recommend for customers looking for products made from recycled materials?
Many of our customers are now looking for hard plastic cases that are made from recycled materials. Trifibre has recently introduced a new range of EKO cases from our partners at Plastica Panaro, which are made from 100% recycled plastic and are also recyclable.
Additionally, this, our rotational moulding The products are fully recyclable and manufactured from a mix of virgin and recycled polymers.
Is the plastic packaging tax a suitable approach to encourage businesses to reduce plastic usage?
At Trifibre, we believe measures that encourage businesses to think green are a step in the right direction. While it provides a financial incentive for companies to explore sustainable alternatives, given the current rate of inflation and pressure on businesses to absorb unprecedented increases in costs, it makes the timing of the introduction of the tax less than ideal for businesses and consumers.
As a company, we are committed to ensuring that, wherever possible, all waste is recycled. As part of this commitment, we are undertaking NQA audits for ISO14001. This will allow us to monitor our carbon footprint, set targets, and implement processes to improve upon this. Read our Environmental Policy To find out more about our commitments to reducing our impact on the environment.