The UK Government will introduce a tax on certain types of plastic packaging on 1st April 2022.
The aim of this new taxation is to actively encourage the use of recycled material in the production of plastic packaging.
Whilst The Sherwood Group are a manufacturer of paperboard packaging solutions, the plastic tax will have an impact on many of the products in our portfolio.
Products that include the heaviest component (plastic) will be considered plastic packaging and thus subject to the tax.
What's subject to tax:
Packaging with windows
Food packaging with PE or PET grease / moisture barrier laminates
Packaging with plastic-based finishes such as gloss / matt / soft touch lamination
What's exempt:
Packaging which has a plastic component containing more than 30% recycled material
Where the packaging is an integral part of the goods and are necessary to enable the product to be used or consumed by the consumer
Medicinal or pharmaceutical items which use plastics as primary packaging
Goods exported, provided they are exported within 12 months of manufacture
Worried about how plastic tax impacts your business? Try our quick calculator...
Still have questions about plastic tax? We've got answers.
Yes, the weight of the window component will be subject to the tax, even if the window is small or is made from bio-plastic.
The window will be subject to taxation if the material is made up of less than 30% recycled material.
The tax is charged at £200 per tonne. For example, if a carton’s paperboard component weighs 14g and the window weighs 1g, the carton will be taxed based on the 1g window. We have provided a simple equation below to show how this would be charged based on an order of 50,000 cartons.
1g = 0.001 Kg per carton
50,000 cartons = 50Kg
750Kg = 0.05 tonnes
0.05 tonnes = £10 Plastic Tax payable
The tax is charged at £200 per tonne. For example, if a carton’s paperboard component weighs 7g and the window weighs 8g, the carton will be taxed based on total weight of 15g. We have provided a simple equation below to show how this would be charged based on an order of 50,000 cartons.
15g = 0.015 Kg per carton
50,000 cartons = 750Kg
750Kg = 0.75 tonnes
0.75 tonnes = £150 Plastic Tax payable