12 08 2019

UK To Proceed With Plans For Plastics Tax

The UK Government has confirmed that it will proceed with its plans to introduce a plastics packaging tax.

At Budget 2018, the Government announced its intention to introduce a "world-leading" new tax on businesses that produce or import plastic packaging which uses insufficient recycled content, taking effect from April 2022.

According to the Government, the tax will be set at a rate that provides a clear economic incentive for businesses to use recycled material in the production of plastic packaging, which will create greater demand for this material and in turn stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration.

Businesses will have until April 2022 to adapt their processes before the introduction of the tax. This will give them some time to adjust their behaviour and help them manage any costs they may face, while ensuring action is still taken to tackle this problem, the Government says.

Earlier this year, HM Treasury launched a consultation seeking views on the initial proposed design for the tax, and this closed in May. It has newly released a document summarizing the responses received and providing feedback.

It has confirmed that the Government will set out the next steps related to the tax in Budget 2019.

It said HM Revenue and Customs will publish a technical consultation on the detail of the tax design at a later date, and publish draft legislation for consultation in 2020.

https://www.tax-news.com/news/UK_To_Proceed_With_Plans_For_Plastics_Tax____97208.html