HAVE YOUR SAY: HMRC CONSULTATION ON CHEMICAL RECYCLING OF PLASTICS AND MASS BALANCE APPROACH.

News / Technical News

HM Revenue and Customs (HMRC) is consulting on the impacts of chemical recycling for plastics and the potential use of a mass balance approach to account for chemically recycled content in the plastics packaging tax (PPT).

PPT was introduced on 1 April 2022 and was informed by two policy consultations in 2019 and 2020. Chemical recycling is a recognised method of recycling plastic waste for the purposes of PPT. However, it is sometimes not currently possible for businesses to use chemically recycled plastic in packaging and not pay the tax. This is because in some cases it is impossible to distinguish between plastic from virgin and recycled sources when this type of recycling is used.

The consultation explores the mass balance approach, mass balance models, and the use of certification schemes to track recycled content through the plastics value chain. It seeks views on the case for allowing a mass balance approach for the allocation of chemically recycled plastic to plastic packaging, and the controls that should be introduced to ensure the integrity of the tax. It can be accessed  here

Everyone is invited to respond, including those in the plastics value chain such as petrochemical businesses and mechanical recyclers, individuals, tax advisers, non-governmental organisations (NGOs), academia/research, certification, trade and professional bodies and other interested parties.

Responses should be submitted either on the response form or via email to indirecttaxdesign.team@hmrc.gov.uk

Alternatively written responses will be accepted to:

Plastic Packaging Tax Policy Team, HMRC
4th Floor Trinity Bridge House
2 Dearmans Place
Salford M3 5BS

This consultation closes at 11:45pm on 10 October 2023

The government will aim to analyse responses and publish a formal response document as soon as possible after the end of the consultation period.

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