From Next Month, Tax on Plastic Packaging... Food Industry Protests "Causing Inflation"

[Photo by TASS Yonhap News]

[Asia Economy Reporter Park Byung-hee] The UK government will impose a tax on plastic packaging starting from the 1st of next month.

Companies that produce or import more than 10 tons of plastic packaging annually and have a recycled plastic content of less than 30% will be taxed ?200 (approximately 319,256 KRW) per ton. If the recycled plastic content in the packaging is 30% or higher, the tax will be exempted.

This law was announced during Chancellor Philip Hammond's tenure in 2018 to increase the use of recycled plastic packaging.

The industry, especially food packaging companies, has expressed dissatisfaction. They argue that the increased cost burden will ultimately lead to price hikes and inflation.

Food companies complain that the government does not recognize exceptions for food packaging, even though it is currently impossible to use recycled plastic in food packaging. They claim that since recycling is not feasible, they have no choice but to pay the tax, which will result in increased costs and higher consumer prices.

A representative from a major food company said that there are no preferential measures for using recycled plastic and that the purpose is simply to tax plastic.

Helen Roberts, CEO of Robinson Packaging, a plastic recycling company, pointed out, "The plastic packaging tax could have unintended consequences," adding, "It may only increase inflationary pressures within the supply chain." She said, "Exceptions should be applied to food packaging containers until technological advancements are made."

The UK government stated that it has minimized the scope of exemptions to increase the use of recycled plastic and will work closely with the food packaging industry and related sectors. The government explained that food packaging accounts for about 40% of all packaging, and exempting food packaging could significantly reduce the effectiveness of expanding recycled plastic use. It also added that many food packaging containers already use recycled plastic or alternative materials to plastic.

This content was produced with the assistance of AI translation services.