Section 111: Preparing for a New Tax in Respect of Certain Plastic Packaging

Abstract

Plastic litter constitutes an important environmental, economic and health problem. To tackle it, policymakers have two main options: they can either regulate the use of plastic (or even ban it); or they can adopt market-based instruments, including tax measures, in order to internalise its environmental costs. Many countries have already introduced bans or charges on plastic bags.

This note briefly discusses the UK proposal for a new plastic packaging tax.

Note: This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London, E14 5AQ, in the British Tax Review as Section 111: preparing for a new tax in respect of certain plastic packaging, 2020) 4 British Tax Review pp. 534-536 and is reproduced by agreement with the publishers.

Keywords: plastic packaging tax; plastic waste; Finance Act 2020