Plastic Packaging Tax (PPT) statistics commentary
Updated 15 August 2024
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Headline statistics
The headlines for Plastic Packaging Tax (PPT) statistics are:
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PPT receipts collected by HM Revenue and Customs (HMRC) in the financial year 2023 to 2024 totalled £268 million, decreasing by 6% compared to 2022 to 2023 which totalled £285 million
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as of 24 July 2024 there were 4,669 businesses registered to the PPT
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of the total tonnage of plastic packaging manufactured in and imported into the UK 42% was declared as taxable under the PPT
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of the remaining 58% of plastic packaging tonnage manufactured in and imported into the UK: 46% contained 30% or more recycled plastic, 11% was either exported, intended for export or converted and less than 1% was exempt because it was used for the immediate packaging of human medicines
About this release
PPT was announced at Budget 2018 and introduced on 1 April 2022. The tax applies to manufacturers and importers of plastic packaging components which contain less than 30% recycled plastic. It was introduced to provide a clear economic incentive to use recycled plastic in packaging and stimulate an uptake in recycling and collection of plastic waste. The PPT Tax Information and Impact Note published on GOV.UK includes information explaining the tax design in more depth.
This official statistics in development publication provides an overview of the tax returns for PPT, including data regarding the registered population, for the financial year of 2023 to 2024 compared to the previous financial year of 2022 to 2023. The statistics are in development as we are able to present two financial years of data for the first time and can compare the annual tax returns. We expect the next PPT statistics will no longer be in development as we will consistently report the new financial year of returns data and compare this to previous years. Feedback on the content of the statistics would be welcomed to maximise its intended impact on users.
Care should be taken when interpreting these figures as the extent of future revisions is not yet known. The figures are not seasonally adjusted so particular care should be taken when looking at the quarterly information.
Plastic packaging manufacturers and importers declare their plastic packaging on fixed quarterly accounting periods ending in June, September, December and March, with returns and payments due by the last working day of the following month.
As PPT went live in April 2022, the first returns for April to June 2022 were submitted in July 2022.
Throughout this publication, dates for revenue and tonnages of plastic relate to the relevant accounting periods where tax became liable, not the dates that businesses submitted their returns or paid their taxes.
The rate applied to taxable plastic packaging was £210.82 per tonne for the financial year of 2023 to 2024, having been £200 per tonne the previous year. Rate information can be found in the PPT Guidance published on GOV.UK.
Revenue
Figure 1: PPT quarterly revenue from chargeable plastic packaging manufactured in and imported into the UK in financial year of 2022 to 2023 and 2023 to 2024
Figure 1 represents the quarterly revenue collected by the PPT in the financial years of 2022 to 2023 and 2023 to 2024. The chart shows that revenue has been lower in the final two quarters of each financial year (note that the data has not been seasonally adjusted).
Total plastic packaging manufactured in and imported into the UK
Businesses that manufacture or import plastic packaging into the UK over 10 tonnes within a 12-month period must declare the amount of plastic packaging manufactured or imported to HMRC.
Table 1: total amount of plastic packaging manufactured in and imported into the UK
| Plastic packaging type declared | Tonnage (thousands of tonnes) 2022-2023 | Tonnage (thousands of tonnes) 2023-2024 |
|---|---|---|
| Imported into the UK | 1,710 | 1,324 |
| Manufactured in the UK | 1,741 | 1,643 |
Table 1 shows the total amount of plastic packaging declared that is either manufactured in or imported into the UK.
Figure 2: total amount of plastic packaging manufactured in and imported into the UK in each financial quarter in 2022 to 2023 and 2023 to 2024
Figure 2 displays that for all quarters in financial year 2023 to 2024, the tonnage of imported plastic is consistently lower than the manufactured tonnage of plastic packaging.
Figure 3: proportional split of plastic packaging manufactured in and imported into the UK in 2022 to 2023 and 2023 to 2024
Figure 3 illustrates the proportional split between the imported and manufactured plastic packaging declared. In financial year 2023 to 2024 a 45% to 55% proportional split between the imported and manufactured plastic packaging declared can be viewed compared to a 50% to 50% split in 2022 to 2023.
Taxable plastic packaging compared to relieved and exempt plastic packaging
Figure 4: total amount of taxable plastic packaging compared to relieved and exempt plastic packaging in each financial quarter in 2022 to 2023 and 2023 to 2024
Figure 4 demonstrates the quarterly breakdowns of plastic packaging that was taxable or relieved and exempt from the tax. The following trends can be observed:
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the tonnage of taxable plastic packaging was lower than the tonnage of plastic packaging that was relieved or exempt in all financial quarters
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a slight downwards trend can be observed in the taxable tonnages from 2022 Q3 (note that the data has not been seasonally adjusted)
Figure 5: proportional split of taxable plastic packaging compared to relieved and exempt plastic packaging in financial year 2022 to 2023 and 2023 to 2024
Figure 5 demonstrates the percentage shares between taxable and relieved and exempt plastic packaging. The taxable proportion of plastic packaging in 2023 to 2024 made up 42% compared to 41% in 2022 to 2023.
Relieved and exempt plastic packaging
Businesses are required to report to HMRC plastic packaging that is relieved or exempt from the tax. There are three scenarios where businesses can do this:
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Businesses can claim tax relief if their chargeable plastic packaging components are exported out of the UK or converted into another chargeable plastic packaging component by claiming a tax credit. Additionally, businesses can defer the tax where they intend to directly export the plastic packaging component within the next 12 months. Liability for the tax is cancelled where the export takes place within that period. From here on, and in the data that follows, this is referred to as “exported or converted”.
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Businesses can claim an exemption from PPT if the plastic packaging is used for the immediate packaging of human medicinal products.
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Businesses must report where their plastic packaging contains 30% or more recycled plastic.
HMRC does not collect data about the recycled content in plastic packaging that is exported or converted or used for the immediate packaging of human medicinal products.
Table 2: total amount of plastic packaging that was relieved or exempt
| Plastic packaging type declared | Tonnage (thousands of tonnes) 2022-2023 | Tonnage (thousands of tonnes) 2023-2024 |
|---|---|---|
| Exported and converted | 722 | 326 |
| Immediate packaging of human medicinal products | 19 | 20 |
| 30% or more recycled content | 1,293 | 1,371 |
Figure 6: total amount of plastic packaging that was relieved and exempt in each financial quarter in 2022 to 2023 and 2023 to 2024
Figure 6 represents the tonnage of plastic packaging that was relieved and exempt from the tax due to the above conditions on a quarterly basis. The figure represents the following trends:
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plastic packaging declared as having 30% or more recycled content made up the largest proportion of the relieved and exempt plastic packaging in all financial quarters except the period of 2022 Q2 (the first period of the tax’s operation) where plastic packaging that was exported and converted made up the largest proportion
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the tonnage of plastic packaging used for the immediate packaging of human medicinal products was significantly lower than the other categories and made up less than 1% in both financial years which is why it is barely visible in the chart above
Figure 7: total amount of plastic packaging that declared as being relieved and exempt or taxable for financial year 2022 to 2023 and 2023 to 2024
Figure 7 represents the tonnage of plastic packaging that was relieved and exempt in each category as well as the tonnage that was taxable under the PPT. The tonnage of plastic that was declared as being over the 30% or more recycled content threshold made up the largest proportion of the total plastic packaging declared.
Figure 8: proportional split of plastic packaging relieved and exempt for financial year 2022 to 2023 and 2023 to 2024
Figure 8 represents the proportional split of plastic packaging that was relieved and exempt in the financial year of 2023 to 2024 compared to 2022 to 2023. The figure displays that plastic packaging containing 30% or more recycled content made up the largest proportion of non-taxable plastic packaging.