On 17 February 2019 the UK government issued a consultation document on the introduction of a plastic packaging tax, inviting comments from interested parties by 12 May 2019.

This consultation follows a call for evidence in March 2018 which received 162,000 responses showing a high level of interest in the issue. Plastic packaging is normally just used for a short period of time and then thrown away. Plastic packaging accounts for 44% of plastic used in the UK, but comprises 67% of plastic waste. Over two million tonnes of plastic packaging is used in the UK each year, most of which is made from new, rather than recycled plastic. New plastic typically has a greater environmental impact needing unnecessary resource extraction and processing using higher energy and emissions than using recycled material. The evidence suggested that using recycled plastic is often more expensive than using new plastic, despite its lower environmental impacts.

In the UK Budget for 2018 announced on 29 October 2018 the Chancellor announced the intention to introduce a new tax on plastic packaging. The tax would apply to businesses producing or importing plastic packaging which uses insufficient recycled content. The tax would take effect from April 2022 and would be charged at a rate that would provide a clear incentive for businesses to use recycled material in producing of plastic packaging; create greater demand for recycled plastic; and stimulate increased levels of collection and recycling of plastic waste.

There would also be reformed Packaging Producer Responsibility regulations to encourage businesses to design and use plastic packaging that is easier to recycle. The government is also consulting on proposals for consistent collection of waste to help households to more easily separate recycling and set minimum standards for local authorities; and on introducing a Deposit Return Scheme for drinks containers.

The proposed tax would apply to all plastic packaging manufactured in the UK and to unfilled plastic packaging imported into the UK. The tax would only apply to plastic packaging with less than 30% recycled content.

If only one manufacturer was involved in the manufacturing process the tax would apply when the packaging product is made available for use or onward sale. The consultation document invites views on the most appropriate tax point if multiple manufacturers are involved in the process.

In the case of imported, unfilled plastic packaging, the tax would apply when the products are imported into the UK and released onto the UK market as plastic packaging or plastic packaging material. The tax would be based on the full weight of the packaging product, at a flat rate per tonne of packaging material. Where the packaging is exported it would not be subject to the tax.

The consultation document invites comments on the definition of products within the scope of the tax; the threshold for recycled plastic content; and the approach to rates. The document explores the precise point at which the tax should be charged and who would be liable to pay the tax. The document also looks at how to minimise the administrative burden for the smallest operators and low volumes of production or import. Other issues covered in the document are the treatment of imports and exports; how to promote compliance with the tax; prevention of opportunities for tax avoidance or evasion; and how business can demonstrate the recycled content of products without the need for an unnecessary administrative burden.