Plastic Packaging Tax rate to increase for 2025 – 2026 financial year
On the 30th of October 2024, HMRC confirmed in the Autumn 2024 Budget, alongside the Government consultation outcome on chemical recycling and the adoption of a mass balance approach, that the Plastic Packaging Tax (PPT) rate will increase to £223.69 per tonne for the fourth year of operation over the 2025-26 financial year. This increase will be legislated in the Finance Bill 2024-25.
The PPT must be paid for on plastic packaging manufactured in the UK or imported into the UK with less than 30% recycled plastic content. The increase for the 2025 – 2026 financial year is in line with Consumer Price Index (CPI) inflation and follows annual increases to the tax rate steadily since its introduction in 2022 at £200 per tonne, to ensure that PPT continues to incentive businesses to use recycled plastic in packaging instead of virgin plastic.
