How Plastic Packaging Tax will affect labels and tags

April 2022 will see the introduction of the Plastic Packaging Tax in the UK. The tax, which aims to reduce the use of virgin plastics and encourage the use of recycled plastics, will be levied on plastic packaging that contains less than 30% recycled content.

We have been in consultation with HMRC and our trade body, BPIF, over the last few months and preparations for the introduction of the tax are nearing completion.

Here we have put together a brief Q&A to cover some of the general questions you may have about PPT on our products.

If you have any specific questions or need more detail, please get in touch with your dedicated Account Manager or call us on 01604 646600

Are labels and tags included in the new tax?

Yes, any label or tag that is intended to be used as packaging and is made from plastic or contains plastic elements, will potentially be due for PPT.

HMRC has an extensive list of examples of items that are included in the tax definition and those that aren’t.

I’m a Piroto customer, will I be affected?

In most cases, the responsibility for tracking, accounting and paying PPT on labels and tags containing less than 30% recycled plastics will be taken up by us.

You may, however need to carry out due diligence on your suppliers to ensure that the tax has been paid.

This link to the HMRC website will tell you more about due diligence in respect of PPT.

Will Piroto help with due diligence checks?

Yes, where the tax is due we will be adding a statement to your invoice to notify you that PPT has been recorded and paid by us.

If you require more information on a particular label or tag, we can advise where the tax applies, and provide a confirmation that it has been paid, on a specification by specification basis.

Will the tax affect label prices?

The tax will increase our raw material costs where the product contains less than 30% recycled material. We will do all we can to mitigate the cost increase or offer an alternative material, where this is not possible there may be a small uplift in prices on some label and tag specifications. Our Sales, Account Management and Customer Service team members will be in touch to discuss any pricing issues.

Can Piroto help make my labels and tags more sustainable?

Almost certainly yes! Our technical team have been building expertise and testing the performance of sustainable label substrates and tag materials. Plus, even where we don’t recommend a change of label or tag material, we can explore other ways to make your labels more environmentally friendly.

We appreciate that all our customers are different, so if you have any specific questions or need more detail on how PPT will affect you, please get in touch with your dedicated Account Manager or call us on 01604 646600