ECONOMY AND MARKET
SUP Directive : it is still unclear how the 25 % will be measured , who will control the percentage of R-PET in bottles and what the penalties will be for those who do not meet the target poration ), who will be checking the percentage of R-PET in the bottles , and what the penalties will be for those who miss the target .
Italian technology plast / October 2024
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THE PLASTIC TAX IN SPAIN AND IN THE UNITED KINGDOM Some R-PET sources think some brands may simply declare they are using R-PET when they are not because they do not expect they will be audited , or others may simply ignore the Directive because of a lack of enforcement . It was a similar situation with the Spanish € 450 / tonne plastic packaging tax in January 2023 . R- PET sources saw no impact on demand last year ( though that may have been caused by the wider cost of living crisis impacting consumer demand during 2023 ), and it was only in May this year that the first Spanish company has reportedly been audited by Spanish authorities to ensure compliance . The UK is an interesting case study in the use of a tax to drive recycled plastic inclusion . In the financial year 2022-2023 , Plastic Packaging Tax ( PPR ) receipts collected by HM Revenue and Customs ( HMRC ) totaled £ 276 million . Government data shows of the total plastic packaging manufactured in and imported into the UK 39 % was declared as taxable under the PPT , and of the remaining 61 % declared , 40 % contained 30 % or more recycled plastic . While there was a good proportion of recycled plastic placed into packaging during the financial year , the £ 276 million collected shows that many companies paid the £ 200 / tonne rather than pay more for recycled material .
ALTERNATIVES TO THE PLASTIC TAX There are instances that show alternative approaches to taxation or regulation can have a posi-
The £ 276 million raised by the plastic tax in the UK shows that many companies preferred to pay £ 200 / tonne rather than pay more for recycled material
tive impact on the recycling sector . In France , lower eco-modulation fees – a form of Extended Producer Responsibility ( EPR ) - on the sorting of mixed plastic waste led to the creation of a recycling stream for low-density PE flexible materials and a growing market for R-LDPE bales and pellets , for example . Eco-modulation fees can also encourage the use of certain types of material ( but also disincentivize the use of others ), as seen in the Czech Republic , where the eco-modulation fee for using clear PET bottles was lowered in 2021 , while the fee for placing coloured PET bottles on the market – perceived to be harder to recycle than clear – was increased . The reaction to the Italian tax , the revenue generat- ed by the UK tax , and the seeming lack of urgency from some beverage brands ahead of the SUPD indicates that for many companies currently , increasing the use of recycled plastic is nowhere near the top of their list of priorities . While consumers focus on reducing the cost of living and companies focus on improving squeezed margins , investment in recycling and the drive to reducing virgin plastic consumption will most likely take a back seat for now .
Additional reporting by Stephanie Wix , Caroline Murray , Ben Monroe-Lake , Carolina Perujo Holland and Mark Victory www . plastmagazine . it