HMRC

UK plastic packaging tax base falls 21% since 2022-23 as mass-balance rules arrive in 2027

HMRC data show UK taxable plastic packaging fell to 1.107 million tonnes in 2025-26 from 1.399 million tonnes in 2022-23, while packaging meeting the 30% recycled-content threshold rose to 1.506 million tonnes over the same period. From April 2027 the Plastic Packaging Tax will allow chemically recycled plastic to count towards the threshold under a mass-balance system, subject to certification and supply-chain controls.

Why this mattersThe 2027 mass-balance rules add certification and supply-chain control duties across UK plastic packaging chains, while the taxable base has already shrunk by about a fifth.

• Taxable plastic packaging declared under PPT fell from 1.399 million tonnes in 2022-23 to 1.107 million tonnes in 2025-26, about 21%.
• Packaging meeting the 30% recycled-content threshold rose from 1.290 million tonnes to 1.506 million tonnes over the same period, about 17%.
• PPT revenue was USD 334m (GBP 250m) in 2025-26, down 4% from USD 349m (GBP 261m) in 2024-25.
• The PPT rate is USD 305.77 per tonne (GBP 228.82) from 1 April 2026, against USD 267 per tonne (GBP 200) at launch in April 2022.
• HMRC had 5,142 businesses registered for PPT as at 13 August 2026.
• From 1 April 2027 chemically recycled plastic may count towards the threshold under a certified mass-balance system.

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