Plastic Packaging Tax Statistics for 2023-2024 Revealed
HM Revenue and Customs (HMRC) recently published the statistics for the Plastic Packaging Tax (PPT) for the financial year 2023-2024. The report offers a comprehensive insight into the impact of the tax and the behaviour of businesses subject to this regulation.
Here are the key highlights from the 2023-2024 report:
- PPT receipts decline slightly- HMRC reported a total collection of £268 million in Plastic Packaging Tax for the financial year 2023-2024, signifying a 6% decrease compared to the previous financial year. This decline in tax receipts may indicate changes in business practices, potentially including increased use of recycled plastic or other materials not subject to the tax.
- Business registrations - As of 24 July 2024, 4,669 businesses were registered for the Plastic Packaging Tax, demonstrating the number of companies recognising their obligations under the PPT and taking steps to comply with the tax requirements. This figure provides insight into the scale of industries affected by the tax and the level of engagement with the UK’s environmental policies.
- Taxable plastic packaging - 42% of the total tonnage of plastic packaging manufactured in and imported into the UK was declared taxable. This percentage highlights the extent to which businesses are still producing or importing plastic packaging that does not meet the criteria for exemption, such as containing less than 30% recycled material.
- Non-taxable plastic packaging - Of the remaining 58% of plastic packaging that was not taxed: -
- Over 46% contained 30% or more recycled plastic, indicating a positive trend towards the use of recycled materials.
- More than 11% was either exported, intended for export, or converted into other products and therefore qualifying for exemptions under the PPT.
- Less than 1% of the plastic packaging was exempt due to its use for the immediate packaging of human medicines, demonstrating the targeted nature of the tax.
The ongoing monitoring and reporting by HMRC will be crucial in assessing the long-term impact of the PPT and ensuring that it continues to drive positive change in the use of plastic packaging within the UK.
Unsure how the tax impacts you?
Beyondly help businesses to understand their tax liabilities and the overall effect of the tax on their business, including their financial, data and reporting obligation. Beyondly can identify key impacts and provide recommendations to allow your business to mitigate these increased costs.
