Who does the plastic tax affect?
The plastic tax will impact businesses differently depending on their position in the supply chain; this can be separated into direct and indirect costs.
It is estimated that the plastic tax will impact 20,000 manufacturers and importers of plastic packaging.
Direct costs apply to businesses as follows, whom would pay the cost of the tax and register with HMRC:
- Importers of finished goods in plastic packaging
- Importers of empty plastic packaging
- UK plastic packaging manufacturers
Indirect costs are applied where the tax has been paid higher up the supply chain, therefore, the cost of products increase for everyone subsequently handling the material. This would include the following parties:
- Businesses selling or handling products in plastic packaging
- Waste management companies
Who is liable for the plastic tax?
Liability sits primarily at one of two parties in the supply chain depending on the source of the material:
For plastic packaging imported into the UK – The business who first takes ownership of the packaging in the UK would be liable.
For plastic packaging manufactured in the UK – The first business who manufactures a finished plastic packaging component would be liable.
What classes as a liable plastic packaging component?
- A finished piece of packaging where plastic is the majority material by weight
- Components are reviewed separately so a bottle and a cap would be treated as individual components, despite forming part of the same finished consumer product