The PPT aims to provide a clear economic incentive to use recycled plastic in packaging. Credit: Oscar Chamorro via Shutterstock.

The latest figures from the UK’s Department for Environment, Food & Rural Affairs (Defra) have indicated that Plastic Packaging Tax (PPT) revenue in the country for the financial year 2023 to 2024 (FY23-24) amounted to £268m ($345.65m). 

This marks a 6% decrease from the £285m recorded in FY22-23.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The tax, introduced to encourage the use of recycled plastic, saw 42% of the total tonnage of plastic packaging manufactured in and imported into the UK declared as taxable in the period.

During the same period, 46% of the non-taxable plastic packaging tonnage contained at least 30% recycled plastic while 11% was either exported, intended for export, or converted.  

Less than 1% of plastic packaging tonnage was tax-exempt as it was used for the immediate packaging of human medicines.  

The PPT, announced in the UK’s 2018 budget, aims to incentivise the use of recycled content in packaging and boost the recycling and collection of plastic waste. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The tax applies to plastic packaging produced in the UK or imported with less than 30% recycled content, including packaging already filled upon import.  

With the PPT becoming effective on 1 April 2022, the initial returns for April to June 2022 were submitted by July 2022.  

The tax was initially set at £200 per tonne for FY22-23.

However, from 1 April 2024, the PPT rate was adjusted to £217.85 per tonne, in line with the consumer price index inflation forecast by the Office for Budget Responsibility.  

As of 24 July 2024, there were 4,669 businesses registered for the PPT.