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Following consultation on ‘Chemical recycling and adoption of a mass balance approach’, the government has published its response. This confirms that it will allow chemically recycled plastic accounted for using mass balance approach (MBA) to be accepted as recycled plastic for the purpose of plastic packaging tax (PPT). It has also been confirmed that pre-consumer waste will no longer be allowed to be treated as recycled plastic for the purpose of PPT. This change will take effect from the same date the MBA is introduced.
UK manufacturers of plastic packaging (including, specifically, petrochemical businesses and those involved in mechanical/chemical recycling) and importers of plastic packaging. In addition, it may have an indirect impact on others in a packaging supply chain (e.g. business customers of manufacturers and importers of plastic packaging, and consumers who buy plastic packaging or goods in plastic packaging in the UK).
The government will undertake further technical engagement before confirming when the change will take effect. It intends to publish draft legislation for technical consultation in due course.
Calculating and accounting for recycled plastic for PPT purposes remains a complex area for taxpayers. The MBA approach presents a practical way to attribute recycled content in chemically recycled plastic., Further details on the policy will be published in due course as the government continues to work with stakeholders on developing the proposal.