In April the Government has introduced a new tax that applies “to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic”
In a nutshell, it states that it will have an impact on plastic packaging that is primarily made of plastic.
Any plastic package that comprises at least 30% recycled plastic is exempt from the levy.
However, whether the packaging is empty or packed, imported plastic packaging will be subject to the tax.
The government expects that by implementing the policy, it will provide “a clear economic incentive for businesses to employ recycled plastic in the manufacturing of plastic packaging, resulting in increased demand for this material.”
They also believe that the move will promote plastic waste recycling and collecting, diverting it from landfills and incinerators.
It is also hoped that after the tax is implemented, the use of recycled plastic in packaging will grow by roughly 40% in the future.
What does this mean for us?
Business does not seem to get easier at the moment with rising inflation and everyone’s bottom line margin getting squeezed.
The introduction of this new tax will increase our own import price and negatively affect our margins.
We will unfortunately need to increase prices to reflect this change. Please be aware that there are some slight price increases to our plastic packaging items.
Many customers have been look to swap to alternative styles of food packaging such as kraft paper or bagasse packaging.
We are actively looking to bring you more paper packaging alternatives! Hope they will be arriving very soon (in June)
These can be a great replacement for standard rectangular/bowl containers (500cc-100cc):
More info on these new products coming soon.
All the best,
The YES Group team.