Plastic packaging tax
Executive summary
- AAT strongly supports efforts to reduce the use of plastic packaging. This should be done by encouraging the development of alternatives, penalising the use of single-use plastics (either through taxation, charges or both) and incentivising behaviour change.
- AAT supports the introduction of a single threshold to assess plastic packaging tax liability but does not believe its application to plastic packaging with less than 30% recycled content is sufficiently ambitious and cannot be considered “world leading” as Government suggests. Instead AAT suggests that a threshold of 40% be used, with a further increase to 50% in 2030 to ensure momentum is not lost.
- AAT believes that the very smallest operators should be excluded from this tax. Calculating who should be excluded should be based on twin considerations of turnover and production/importation weight.
- AAT suggests any company operating below the VAT threshold (currently £85,000) should be excluded from this tax. The VAT threshold is already a widely recognised and understood threshold, so this should help maximise compliance.
- Given the importance of securing compliance and encouraging behaviour change, GDPR style penalties for failing to pay the plastic packaging tax should be considered. These have proven very effective in ensuring companies take their data protection related duties seriously so would likely ensure compliance with plastic packaging taxation is similarly given great prominence.
Related consultation responses
Enhancing climate-related disclosures by asset managers, life insurers and pension providers
We support efforts to increase the visibility of climate related risks in financial markets, and the use of TCFD recommendations as a basis of reporting.
Plastic waste
AAT strongly supports efforts to reduce single use by encouraging alternatives, penalising through taxation, charges or both and incentivising behaviour change.
Aviation tax reform
We don't agree with proposals to reduce Air Passenger Duty on UK domestic flights because it contradicts and weakens policy on reaching net zero by 2050.
Tougher consequences for promoters of tax avoidance
AAT welcomes more information on how often HMRC plans to use its criminal investigation powers and what resources are available to fund it.
