Plastic Packaging Tax Increased in April: How to Cut Costs Without Compromising Quality
The Plastic Packaging Tax (PPT) increased this April, and if your business relies on plastic packaging, it’s crucial to understand what this means for you. The UK government introduced PPT in April 2022 to encourage companies to use recycled plastic in their packaging, ultimately reducing plastic waste and promoting sustainability. From April 2025, the tax rose from £217.85 to £223.69 per tonne, adding further costs for businesses that don’t meet the requirements.
What Are the Requirements of the Plastic Packaging Tax?
The Plastic Packaging Tax applies to plastic packaging components that contain less than 30% recycled plastic. If your packaging doesn’t meet this threshold, you’ll be taxed per tonne, and with additional rate increase likely in the future, this cost will only grow.
The tax is designed to:
- Reduce dependency on virgin plastics
- Incentivise the use of recycled materials
- Encourage businesses to adopt more sustainable packaging solutions
With these rising costs, businesses need to consider whether their packaging strategy is sustainable and cost-effective.
What Can Businesses Do to Reduce Costs?
While switching to packaging with 30% recycled plastic is an option, it’s not always practical. Many industries, such as food and pharmaceuticals, have strict regulations that limit the use of recycled materials. So, what’s the alternative?
Reducing the amount of plastic used in packaging is one of the most effective ways to mitigate the impact of the tax—without compromising product quality or protection and flow wrapping uses the least amount of packaging while still providing protection for the product and a used flow wrapped pack when sent for recycling takes up minimal space and does not require any dismantling prior to recycling.
How Paramount Packaging Systems Can Help
At Paramount Packaging Systems, we offer Fuji flow wrapping machines, designed to significantly cut down on plastic use. These machines optimise the wrapping process, reducing unnecessary material consumption and helping businesses meet sustainability goals without the need for major packaging redesigns.
Fuji Flow Wrappers and Plastic Reduction
Just as Fuji flow wrappers have helped businesses tackle the skills shortage by reducing reliance on highly skilled operators, they can also help with plastic reduction. Their precision engineering and automation ensure that only the necessary amount of film is used, helping companies cut waste, comply with environmental regulations, and reduce costs.
Consumer appeal
Fuji horizontal flow wrappers provide a high quality finish that consumers trust and prefer. The clear, tight seal is more than just protective; it’s also visually appealing, and in retail, attractive packaging often translates to improved sales.
Preparing for the Future
With ongoing Plastic Packaging Tax increases likely, now is the ideal time to review your packaging strategy. Reducing material use, improving efficiency, and investing in sustainable solutions can help manage costs while supporting environmental goals.
If you’d like to explore ways to reduce plastic usage and improve packaging efficiency, get in touch with Paramount Packaging Systems to find out how Fuji flow wrapping technology can support your business.