Plastics: Taxation

(asked on 16th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the £200 per tonne plastic packaging tax will apply to 100 per cent compostable packaging; and if he will make a statement.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 19th November 2020

On 12 November, the Government published the summary of responses to the recent consultation on the detailed design and implementation of the Plastic Packaging Tax. This included confirming the consultation proposal to include compostable and bio-based plastic packaging in the scope of the tax. As set out in the consultation, all packaging, including that which is 100% compostable, will be in scope of the tax if plastic is the predominant material by weight.

As set out in the summary of responses to the consultation, the Government believes that alternative plastics can play a role in addressing plastic waste if used in the right circumstances. However, further evidence is needed on the impact of widespread adoption of such materials, and it is right to include them within scope of the tax at this stage. As part of the Bioeconomy Strategy, the Government is working with industry and the research community to better understand the impact of using bio-based, biodegradable and compostable plastics. Following the conclusion of the Bioeconomy Strategy, the Government will consider further the treatment of these plastics in relation to Plastic Packaging Tax.

The Government carefully considered the impacts of the tax when making the decisions set out in the summary of responses to the consultation. More information on impacts is available in the Tax Information and Impact Note - https://www.gov.uk/government/publications/introduction-of-a-new-plastic-packaging-tax/introduction-of-a-new-plastic-packaging-tax

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