Measure

Plastic packaging tax

The measure

The plastic packaging tax (PPT) rate with effect from 1 April 2027 has been announced. The rate of PPT will increase to £236.56 per tonne, in line with the Consumer Prices Index (CPI).  

Following consultation, the government will introduce mandatory certification for mechanically recycled plastic used in plastic packaging for the purposes of PPT.  

 

Who will be affected?

Businesses that are registered or registrable for PPT, parties in the supply chain, and buyers of chargeable plastic packaging components.

 

When will the measure come into effect?

The introduction of mandatory certification will apply from 1 April 2030.  

Our view

The rate increase reflects the rate of inflation and is expected, especially given the intention of the regime is to increase the cost of non-recycled plastic packaging materials, and thereby incentivise the use of recycled plastics.  

The mandatory certification requirements follow the consultation process.