21 July 2023

UK consultation on plastic packaging tax – chemical recycling and a mass balance approach

HM Revenue and Customs (HMRC) is consulting on the potential use of a mass balance approach for chemically recycled content for the Plastic Packaging Tax (PPT).

The PPT was introduced in April 2022 and provides an economic incentive for businesses to manufacture plastic packaging using recycled plastic. PPT is not charged on components containing at least 30% recycled plastic, contributed to by both mechanically and chemically recycled plastic. However, sometimes it is not possible to differentiate between virgin and recycled plastic content when chemical recycling is used.

The consultation investigates the use of a mass balance approach for the PPT to ascertain the proportion of chemically recycled plastic in an item of plastic packaging, and is requesting input on if a mass balance approach is the appropriate method of allotting a recycled plastic content to packaging. It is also seeking views of the controls and standards that would be necessary to ensure the integrity of the tax if a mass balance approach is accepted.

More information about the consultation can be found on the UK Government website here.

IOM3 would like to invite members to contribute to the IOM3 response to the consultation by emailing [email protected] by 26 September 2023.