Plastic Packaging Tax (PPT): What UK Businesses Should Know
Part of our Responsible Packaging guidance
Last updated: April 2026
Plastic Packaging Tax (PPT) is now a standard part of how packaging is costed, specified and supplied in the UK.
While not every business is directly responsible for paying the tax, most will feel its impact through material choice, supplier pricing and packaging decisions.
This page provides a practical overview of what PPT is, who it affects, and what businesses should be reviewing now.
Why this matters
Packaging is no longer just a purchasing decision.
Plastic Packaging Tax means material choice now has a direct impact on cost.
For many businesses, the focus has shifted from:
- “Do we pay PPT?”
to:
- “Where is PPT affecting our packaging and costs?”
Even where businesses are not directly obligated, the tax is often passed through the supply chain and reflected in packaging prices.
What is Plastic Packaging Tax (PPT)?
Plastic Packaging Tax is a UK tax applied to plastic packaging that contains less than 30% recycled content.
From 1 April 2026:
- The rate is £228.82 per tonne
- It increases annually in line with inflation
The aim is to:
- Encourage the use of recycled plastic
- Reduce reliance on virgin material
- Improve sustainability across packaging supply chains
Who does PPT affect?
PPT applies directly to businesses that:
- Import goods or packaging into the UK
- Manufacture plastic packaging in the UK
- Place packaged goods on the UK market
Registration threshold
You must register if you handle:
- 10 tonnes or more of plastic packaging in a 12-month period
Important
You must still register if you exceed the threshold, even if all packaging meets the 30% recycled content requirement and no tax is payable.
In practice
Many businesses are affected indirectly, as PPT costs are often built into packaging prices and passed through suppliers.
What should businesses be reviewing now?
Rather than focusing on the tax in isolation, it is more useful to review packaging in the round:
- Which packaging lines fall below the 30% recycled content threshold
- Where recycled-content alternatives are available
- Whether material usage can be reduced
- How PPT is affecting overall packaging cost
- Where performance and sustainability need balancing
PPT is now as much a specification decision as it is a tax.
What do you need to do?
If you are registered for PPT:
- Submit quarterly returns
- Pay tax where applicable
- Keep records for at least 6 years
- Maintain product-level packaging data
If you are approaching the threshold:
- Track packaging volumes
- Monitor progress towards the 10 tonne threshold
- Review packaging specifications early
For all businesses:
- Gather evidence of recycled content
- Understand how PPT applies across your supply chain
- Be aware of cost pass-through in packaging pricing
How does PPT impact cost?
PPT directly affects packaging cost depending on material choice:
- Below 30% recycled content → tax applies
- Above 30% → no tax
- Annual increases continue to apply
- Costs are often passed through suppliers
In practice:
- Two similar packaging products can carry very different total costs
- Lower unit price does not always mean better value
- Specification decisions affect long-term cost and risk
Common misunderstandings
“We don’t pay PPT, so it doesn’t affect us.”
In reality, the cost is often passed through the supply chain.
“All recycled content performs the same.”
Material quality and performance can vary.
“Cheaper packaging is always better value.”
PPT means total cost needs to be considered, not just unit price.
How Samuel Grant Packaging can help
We take a practical, specification-led approach:
- Identify packaging below the 30% threshold
- Provide clear recycled content data
- Recommend compliant alternatives
- Balance performance, cost and sustainability
- Support longer-term packaging decisions
We’ll review your plastic packaging, highlight where PPT applies and help you reduce unnecessary cost.
Contact us to discuss a packaging audit
Related Packaging Regulations
Plastic Packaging Tax sits alongside other packaging regulations, which are increasingly linked and should be considered together:
Extended Producer Responsibility (EPR) – reporting and waste costs
Recyclability Assessment Methodology (RAM) – recyclability-based fee structure
Packaging and Packaging Waste Regulation (PPWR) – EU requirements affecting exports
Further guidance
For detailed guidance, visit:
Or speak to your Samuel Grant Packaging account manager.
