The UK Plastic Packaging Tax
As you are aware, Berry Global have a robust and ambitious strategy to accelerate the transition toward sustainability and circularity. This is part of our Impact2025 plan focusing on product design, material selection, recycling, and manufacturing excellence.
In this respect, we are pleased to inform you that, at end of December 2021, many of our standard products had been tested and qualified with a minimum of 30% PCR content inside. This is a significant step in our journey, being supported by our recently announced investment in a new polymer recycling unit in the UK. This new capacity will enable to offer rPP-mechanical recycled–FDA grade by end of Q3/2022. We encourage you to pre-book this material as early as possible so that it can be included in your products.
With regards to your specific products, we are actively working with your packaging teams to speed-up the qualification of all your SKU’s with our new CleanStream® technology, so that we are jointly ready for the next transformation stage. In this matter, your support will be key.
As you are also well aware, the Government and HMRC are introducing The Plastic Packaging Tax from the 1st April 2022. This is a tax on all plastic packaging supplied by companies who either manufacture or import plastic packaging into the UK. As a result, UK law gives Berry permission for terms of contracts to be changed to reflect the cost of PPT from this date.
The current rate of tax levy is £200 per tonne of packaging supplied. The Primary Legislation is still being revised but it is planned the tax will be recovered through our invoices from the 1st April 2022 for all applicable plastic packaging supplied.
There are several exceptions to the tax, and the UK Government are planning further updates to this tax as we approach April 2022. Further information on the plastic tax can be found on the UK government website at: Get your business ready for the Plastic Packaging Tax – GOV.UK (www.gov.uk)
The main exception to the tax is a minimum requirement for 30% of product weight to be made up of recycled material, therefore the necessity to qualify all your products with PCR inside, as fast as possible, realising that material availability will be limited in the coming years.
We will continue to keep you informed as updates are made available from the UK Government, and your usual contacts at Berry remain available for any further information and support you may require.