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.

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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.  

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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. 

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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.