The government is releasing a new scheme that all business owners need to be aware of.
Businesses who make or import plastic packaging that contains less than 30% recycled plastic must register for the upcoming plastic packaging levy, according to the government.
The proposed new tax, which is set to take effect in 2022, will compel all enterprises that make or import 10 tonnes or more of plastic packaging in a 12-month period to register, regardless of whether they owe any tax.
Plastic Packaging Tax will be charged to all businesses that use packaging that comprises less than 30% recycled plastic.
Importers of packaging that already contains commodities, such as plastic bottles loaded with drinks, are included in this category. When other commodities are included in the imported package, the tax solely applies to the plastic packing.
How will this affect my business?
The fee is designed to encourage firms to think about using more recycled plastic and to adapt the packaging they use to incorporate at least 30% recycled plastic.
As a result, you will be exempt from the tax.
Non-resident taxpayers who import more than 10 tonnes of plastic packaging in a year, including plastic packaging that contains more than 30% recycled plastic or is tax-exempt, must nevertheless register and account for any tax owed.
If you own a business, the government is advising you to check the materials used to produce your stock.
Businesses that purchase plastic packaging on which tax has already been paid should ensure that this is correctly accounted for.
The new Plastic Packaging Tax guidelines are still being debated in Parliament and are not yet law.
However, the government is recommending eligible businesses to begin planning now.
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