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 Tax

The Plastic Packaging Tax came 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 incineration

Businesses must register for the tax if they manufacture or import 10 tonnes or more of 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) Scheme

The Extended Producer Responsibility (EPR) scheme for 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 market
• Fees are based on the amount and type of packaging, incentivizing the use of more sustainable materials
• The scheme aims to shift the cost of managing packaging waste from taxpayers and local authorities to the producers, following the “polluter pays” principle

Businesses are obligated under the EPR scheme if they:

• Have an annual UK turnover of £1 million or more
• Are responsible for importing or supplying more than 25 tonnes of packaging to the UK market in the previous calendar year

These 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 members

If you are a UKFT member with questions, get in touch at info@ukft.org

For details on how to become a member, visit www.ukft.org/membership