Plastics: Taxation

(asked on 17th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the plastic packaging tax on trends in the availability of 100 per cent compostable packaging.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 23rd November 2020

The Government carefully considered the impacts of the tax across the supply chain when making the decisions set out in the summary of responses to the consultation, which was published on 12 November. As per the Tax Information and Impact Note, the Government considered the overall impacts on up to an estimated 20,000 producers and importers of plastic packaging that would be liable for the tax, including those who produce compostable packaging. 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.

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, and it is 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 these plastics in relation to Plastic Packaging Tax.

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