5/3/2025

UK Plastic Packaging Tax vs UK Packaging EPR Scheme explained

UKFT outlines the key differences between the UK Plastic Packaging Tax and UK Packaging EPR Scheme for UK fashion and textile companies.UK Plastic Packaging TaxThePlastic Packaging Taxcame into effect on April 1, 2022. It applies to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. The tax rate is set at £200 per tonne of plastic packaging.The main objectives of this tax are to:Encourage the use of recycled plastic in packaging.Increase the demand for recycled materials.Reduce plastic waste going to landfill or incinerationBusinesses must register for the tax if they manufacture or import10 tonnes or moreof finished plastic packaging components within the UK in the last 12 months or expect to do so in the next 30 days.UK Packaging Extended Producer Responsibility (EPR) SchemeTheExtended Producer Responsibility (EPR) schemefor packaging is designed to make producers responsible for the entire lifecycle of the packaging they place on the market, including its disposal. Key points include:Producers must report the amount and type of packaging they place on the marketFees are based on the amount and type of packaging, incentivizing the use of more sustainable materialsThe scheme aims to shift the cost of managing packaging waste from taxpayers and local authorities to the producers, following the "polluter pays" principleBusinesses are obligated under the EPR scheme if they:Have an annual UK turnover of£1 million or moreAre responsible for importing or supplying more than25 tonnesof packaging to the UK market in the previous calendar yearThese measures work together to promote the use of recycled materials and ensure producers are accountable for the end-of-life management of their packaging.UKFT membersIf you are a UKFT member with questions, get in touch atinfo@ukft.orgFor details on how to become a member, visitwww.ukft.org/membership

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