Plastics recycling tax likely to increase cost of plastics packaging in short-to medium term
Commenting on UK Chancellor Philip Hammond's Budget announcement of a new tax on the manufacture and import of plastic packaging that contains less than 30% recycled plastic, Wood Mackenzie Chemicals Head of PET, Philip Marshall, said:
"Due to the challenging nature of collection, recyclate availability is proving difficult to increase and then re-use. If there is a greater demand placed on recyclate used within packaging production, due to today's proposed tax, the cost of said packaging is likely to rise in the short-to-medium term. Historically, these charges have been taken by brand owners and producers.
"Additionally, there are technical difficulties - with no speedy solutions available - to overcome. To ensure 30% recycled PET is used in packaging, this material will need to be collected and reused in the first instance - which still remains one of the biggest hurdles to overcome."