The 2022 UK plastic tax

The 2022 UK plastic tax

The government is facing increasing pressure to scrap a proposed plastic tax on silage film that would cost farmers £200/t.

In December last year, HMRC published guidance which, for the first time, indicated that silage film would be liable for the plastic packaging tax (PPT) that will come into force on 1 April 2022.

Concern from the Industry has been raised that silage film will fall within the definition of packaging despite its primary purpose being to ensure harvested grass can be fermented into silage.

silage roll

However, the minister said while she does not dispute that the film is part of the process of turning grass into silage, that does not exempt it from falling within the definition for the tax.

She said: “That definition is targeted so that it does not include plastic packaging products that are essential for goods to be used, in contrast to products that are essential for goods to be manufactured.

“Therefore, products such as tea bags, coffee pods, inhalers and lighters are not taxable because the product contained by the packaging simply could not be used by the end user without the packaging. However, that is not the case for silage film.”

For more details follow these links:
Calls rejected for silage film tax exemption
Introduction of Plastic Packaging Tax from April 2022
Plastic Packaging Tax – Important News For Farmers - ARK Agriculture