Plastics: Taxation

(asked on 24th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of including bio-based and compostable bioplastics in the scope of the plastic packaging tax on levels of bio-based plastic 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 30th 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 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. This includes the interaction with current waste management as noted in the 2019 call for evidence on standards for bio-based, biodegradable and compostable plastics. It is therefore 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

Reticulating Splines