Autumn Statement 2023: A review of Plastic Packaging Tax
Andrew Thurston · November 24th 2023 · read
HMRC has a plan to prod businesses into using more recycled content if the current Plastic Packaging Tax (PPT) rate looks to be ineffective.
The Autumn Statement revealed a Plastic Packaging Tax (PPT) rate increase to £217.85 from April 1, 2024, and a plan for evaluating the future of the tax. This plan will be informed by data from six PPT return periods, which will provide HMRC and the Treasury insights into behavioural shifts regarding recycled packaging.
If a substantial move towards recycled plastic packaging isn't evident, businesses may face a notable escalation in the tax rate. The aim is to prod companies into prioritizing the integration of recycled content within their supply chains.
However, this proactive stance isn't without its risks. Importers of consumer goods from the Far East may find themselves in a bind. Their ability to influence manufacturers, particularly in adhering to fixed-price contracts, could be severely constrained if a sudden tax rate increase materializes.
Check out our 10 Key Points from the Autumn Statement
View moreFor further guidance
For further guidance on any of the tax measures discussed in this article, please contact your usual MHA advisor or contact us
Read the latest Autumn Statement 2023 commentary on our dedicated hub, where we will be providing resources, advice and practical guidance on what any new tax measures mean for you and your business, to help you prepare for and manage their impact.
