Logistics firm Southgate Global, of King’s Lynn, is calling for a “robust, transparent, and uniform verification scheme” to help businesses navigate the Plastic Packaging Tax (PPT).
Following the last UN Climate Change Conference (COP30), there is an even more pressing need for companies to consider more sustainable operations.
In the UK alone, the government has taken decisive steps towards this, with the introduction of PPT in 2022, aimed at providing an economic incentive to businesses in all sectors to use more recycled plastic in packaging.
However, the tax has come under increasing scrutiny particularly regarding weak verification systems, suggesting virgin plastic is being sold under false recycled claims.
Gavin Gill, Head of Compliance at Southgate Global, has called for more to be done to support businesses through the verification process and help them operate more sustainably.
He said: “It’s encouraging to see the government taking decisive steps to implement solid incentives, such as the Plastic Packaging Tax (PPT), for British businesses to operate more sustainably.
“However, ongoing issues with the verification of recycled content throughout the supply chain and compliance are a growing concern for organisations.
“The PPT compliance brings an additional administrative burden, such as record-keeping and reporting, which can be both time-consuming and costly.
“Serving over 3,000 customers in more than 20 countries around the world, we know the impact this can have, particularly on smaller businesses, which cannot always absorb the financial burden.
“These factors combined can significantly impact a company’s bottom line, all while not having the desired environmental outcome.
“We’re already tackling this issue with GRS-Certified (Global Recycled Standard) products, which customers can be assured are exempt from any levy. But more needs to be done to support organisations in making sustainable choices.
“A robust, transparent, and uniform verification scheme should be implemented to help businesses navigate the process confidently.”
Originally introduced on April 1, 2022, PPT was established to provide an economic incentive for businesses in all sectors, including packaging, logistics, and manufacturing, to use more recycled plastic in packaging.
By applying a tax to packaging that uses less than 30 per cent recycled plastic, thus increasing the cost of virgin plastic, it was hoped organisations would be incentivised to use recycled materials and support a circular economy.
In its first 10 months, the tax raised over £28m more than expected.1 However, over the last three years, it has come under increasing scrutiny, particularly regarding weak verification systems, suggesting virgin plastic is being sold under false recycled claims.
This, combined with additional pressures on the supply chain such as increasing costs and geopolitical instability, has sparked concerns around the enforcement and effectiveness of the tax.
Reference
www.endsreport.com/article/1823791/plastic-packaging-tax-exceeds-revenue-projections-first-10-months
