What do I Need to do About the Plastic Tax?
If you buy packaging, you may have been tempted into extreme measures by the various articles and headlines swirling around. So, if you are limbering up a hefty spreadsheet or preparing to send endless surveys to suppliers – stop! This article could save you hours.
We’ve been following this tax and its implications for over a year. Here are the facts!
Firstly – it's highly unlikely if you are reading this on a packaging website that you need to register for the tax or even know how much plastic packaging you use, let alone the details. Let’s answer the questions around that first.
Do I need to register for the tax?
If you are not importing plastic packaging or manufacturing, it – no. That rules out most.
Here are the facts.
Do I need to keep records of the plastic packaging I’m using?
If you don’t already, then no. There’s no obligation on you because of this tax – it's all on the importers or manufacturers. You shouldn't stop doing that if you already keep records (high-volume users will do it for other reasons).
We’ve just eliminated a few potential spreadsheets right there! However, this isn’t a dismissive article about the plastic tax, and we are not suggesting that you ignore it. Here’s why…
Will I spend more money on the packaging because of the tax?
Absolutely yes. Your packaging supplier will very likely be paying the tax. Cutting to the chase, the plastic tax adds £0.20 to every KG of plastic imported or manufactured. These suppliers are not a charity – they’ll add it on! This means these items could be expected to increase in price – we estimate around 10%.
Does it apply to all Plastic Packaging?
No. It only applies to items that do not contain 30% recycled material. Many plastic packaging items do contain 30% often more recycled material. But some of the larger volume items, like tape or plastic stretch wraps, don’t have any recycled material and will be affected in price.
Here are the facts.
Having established that you don’t have to pay or register for the tax yourself – or even record materials, for that matter – we’ve now recognised that there could be cost implications. Nobody likes those, so what to do?
Are there ways to avoid items with less than 30% recycled material?
Yes, but you and your packing team must be open to change! Also, some innovations are new and expensive. Don’t fall for fancy products before getting the facts on your current packaging first. There are three opportunities – move to paper-based materials, try materials with recycled materials or reduce the amount of packaging used.
Those three things are for another article on another day, but here’s a good rule of thumb. If you haven’t reviewed your packing process for over 12 months, some options for you will likely do either of those there.
A word on packing process reviews – these do not have to be three-to-six-month affairs! Reviewing your packaging can be a matter of one meeting and a few samples that will soon demonstrate savings.
What should I expect from my supplier?
Whilst you may not need to go Excel-Happy, there is no reason why you shouldn’t expect your supplier to! Ask them which items will be affected by the tax, how much it will add to the cost, and what they have as an alternative. Suppliers worth their salt will be able to provide that in a timely fashion, along with samples of the products for you to try.