Beat the Plastic Packaging Tax rise with Schoeller Allibert

Plastic tax picture UK

It seems like everything is getting more expensive at the minute. From the food on the shelves to petrol at the pump, bills everywhere are going up – and unfortunately, tax bills on plastic packaging are no exception.

Since the start of April, all businesses using plastic packaging manufactured or imported into the UK have had to pay a new, higher rate of £210.82 per tonne. This levy, up from £200 last year, is part of the government’s Plastic Packaging Tax (PPT). Although this increase may seem minor to some, increments like this can soon add up in the modern logistics landscape operating at scale.

With steep rises ongoing in the cost of doing business and consumer spending declining in certain sectors, any measures to reduce costs can prove a significant benefit.

There are multiple ways businesses can seek to minimise the expense caused by the PPT, by ensuring requirements are firmly embedded across existing processes. This could include incorporating requests for packaging information into any procurement processes; mapping plastic footprints (including any waste produced) across the business; or, crucially, assessing methods for reducing the use of plastics overall.

This last option is possible because not all packaging is subject to the PPT. This tax is designed to encourage businesses to consider how the packaging they use affects the planet, throughout its entire lifecycle, to promote a more circular economy.

For example, as of April 2023, reusable plastic crates used in imports are exempt from the tax, which alleviates businesses that use these crates from accounting for the PPT after customs. Any plastic packaging containing at least 30% recycled material by weight is also exempt, providing a solution for eco-conscious businesses to reduce their carbon footprint and outgoing expenses.

Schoeller Allibert’s plastic returnable transit packaging (RTP) is the ideal solution for businesses wanting to minimise their PPT spend. As of December 2022, our new RTP contains at least 48% recycled plastic. This means not only is it exempt from the PPT, but it can also play a significant part in supporting businesses towards meeting their environmental, social and governance (ESG) targets.

Recycled plastic use is a key feature of our Circuline® range. Every Circuline product is made of at least 30% recycled polypropylene or high-density polyethylene – with some reaching as high as 100%. With bulk rigid pallet containers, foldable small and large containers, pallets, stackables, handhelds and more included in the range, Circuline has a PPT-beating option for every logistics chain.

What’s more, all Schoeller Allibert packaging can be recycled at the end of its life, creating even more recycled RTP and promoting a circular economy.

A circular economy turns the traditional packaging model on its head. Instead of using natural resources just once before discarding them, waste and pollution are designed out by keeping materials in use and minimising new requirements for raw materials.

Fully transitioning to a circular packaging economy will not be an easy task. Achieving true circularity will require new thinking from businesses and new operating models, as well as closer collaboration across the entire product ecosystem. In the meantime, choosing the right RTP that supports circularity is key – and if it helps to minimise your business’s costs, so much the better.

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