The latest HMRC data this morning reveals that the Plastic Packaging Tax (PPT) has raised a total of £263 million through the first 10 months of the scheme. It means that the Tax has already significantly exceeded HMRC targets with the government estimating the tax would generate £235 million in its first 12 months.
A total of £55 million was raised in April which suggests that revenues will flatline in the fourth quarter of tax receipts after PPT raised £72m in Q1 2022/23, followed by £70m and £66m in Q2 and Q3 respectively. The majority of quarterly revenues are raised through the first month of the quarter as companies submit returns so tax receipts are only likely to increase marginally over the coming two months,
Steve Gough, Chief Executive Officer at Valpak, a leading provider of environmental compliance and part of Reconomy Group, commented: “The figures from HMRC this morning reveal that the government has raised substantially more than anticipated in the first year of the Plastic Packaging Tax.
“The levy aims to increase the proportion of recycled plastics in packaging by charging businesses that have manufactured or imported plastic packaging components containing less than 30% recycled plastic.
“It is promising to see government action aimed at combatting the use of virgin plastics to drive greater circularity throughout the UK economy. Increased awareness around packaging compliance and growing regulatory demands will help nudge businesses towards making the changes needed to achieve sustainability targets.
“It is promising that the government has already suggested amendments to PPT to make the system simpler and more effective by using a ‘mass balance’ approach to calculate the percentage of chemically recycled content included in plastic packaging. The proposals also aim to encourage further innovation and investment into chemical recycling for long-term, sustainable solutions.”