PLASTIC packaging manufactured in, or imported into, the UK containing less than 30% recycled plastic will be subject to a tax of £200 per metric tonne of packaging.
Coming into effect from tomorrow (April 1), various companies in the sector have revealed their thoughts, how they have prepared and the launch of new products to help firms meet the threshold.
Suffolk-headquartered Denny Bros Ltd has unveiled a new wet peel labelling product made from recycled materials ahead of the tax.
MD, Graham Denny, said, Managing director Graham Denny said: “There were two main reasons for developing this product. Firstly, as a company, we feel a responsibility to do all we can when it comes to the environment. With this label being made from recycled materials, we feel it fits in well with our ethos. Secondly, it has been designed to help combat any issues faced by the Plastic Packaging Tax as it comprises entirely recycled material.
“The tax is being introduced to provide an incentive for businesses to use more recycled material. This product is essentially an extension to our original peel and reveal labels – the only difference being the material it’s made from.”
KM Packaging has launched PCR product solutions across its K Peel, K Foil and K Seal ranges. The firm said that all of the product specifications that contain PCR (derived from mechanical processes) meet the minimum of 30% content required to avoid the tax.
“KM can, therefore, provide customers with a comprehensive offering to meet their PCR requirements,” the company stated. “The range of products has both peelable and weld seal PET PCR lidding films. And there are solutions suitable for sealing to CPET, Mono CPET, APET, RPET, PP, and foil trays (uncoated and lacquered).”
Cirplus, the global marketplace for circular plastics, called the introduction of the tax a ‘great start’ in combating the ‘plastic crisis’.
Christian Schiller, co-founder and CEO of cirplus, said, “This tax means real momentum towards a circular economy for plastics, and digitisation is key to truly closing the loop. The recycling and plastic value chain must rely on transparent global supply chains for recycled plastics and plastic waste feedstock. This is only achieved if digital technology is deployed across the board, starting from waste pick-up to recycling until the plastic is back in your next shampoo bottle.
“The Government should therefore use the tax to inspire better design for recycling, and fund research and development into better recycling technologies, as well as embracing the crucial role that digitisation has to play in this space. No data, no markets for recyclates. The tax is a great start in combating the plastic crisis, but there is still plenty of work to do.”
Having lobbied for such a tax, A Plastic Planet welcomed the tax but the organisation warned it ‘doesn’t go far enough’. Co-founder Sian Sutherland said, “A Plastic Planet called for it, and nearly four years after it was announced the world’s first plastic packaging tax has finally been delivered. But the result is underwhelming, with a raft of concerns sprouting from its design.
“First off, there needs to be clarity around who will be policing it, ensuring that packaging producers are held accountable for complying with it. We’ve witnessed this before, when loopholes are made available to industry, we will fail. Secondly, the tax doesn’t go far enough. 30 percent recycled content is a drop in the vast plastic waste ocean, and fails to incentivise a dramatic shift away from virgin plastic. This tax needs to go further. All plastic should be taxed because, unless incinerated, eventually all of it ends up in our environment. Plastic was never designed to be circular.
“A plastic tax can be a powerful tool for inspiring industry to move away from this toxic, highly polluting material, but only if it is delivered right. We therefore call on the Government to urgently strengthen its tax with robust measures which will force the hand of industry to turn off the plastic tap.”
Schoeller Allibert, global manufacturer of returnable and recyclable transit packaging, said it has noted an increased interest in renting transit packaging rather than upfront acquisition – which it said appears to be ‘accelerated’ by the tax.
Gero Liotti, retail account director at Schoeller Allibert UK, explained, “There’s a real wave of change happening in the manufacturing and retail industries. Sustainability is now front and centre of operations, which for many businesses means streamlining and reducing any areas of potential waste. In essence, this means a changing view of the supply chain and where that all-important capital is going. As such, we are seeing more and more businesses choosing to rent over purchasing. It seems to be that the agility this gives the supply chain is particularly valuable.
“A number of benefits are secured when renting including the reduced cost of not purchasing equipment outright, maintenance is already taken care of by a dedicated team and notably, the new plastic tax can be avoided. The rental approach also means it’s easier to upscale or downscale as needed, providing the flexibility that global brands are looking for.”
