The UK Plastic Packaging Tax (PPT) generated revenues of £250 million in the 2025/26 financial year. At the same time, the proportion of taxable plastic packaging has fallen further. According to the UK tax authority HM Revenue & Customs, a large proportion of reported packaging now contains at least 30 percent recycled plastic.
The Plastic Packaging Tax has applied in the UK since April 2022. It is charged on plastic packaging components that contain less than 30 per cent recycled plastic. Manufacturers and importers must report their quantities if they manufacture or import more than ten tonnes of plastic packaging within a twelve-month period. In the 2025/26 financial year, the tax rate was £223.69 per tonne.
Taxable amount falls
A total of 2.97 million tonnes of plastic packaging were reported for 2025/26. Of this, 1.58 million tonnes were produced in the UK and 1.39 million tonnes were imported. Compared to 2022/23, when a total of 3.433 million tonnes were reported, this represents a decrease of around 13 per cent.
Taxable amounts in the past financial year stood at 1.107 million tonnes, or 37 percent of the total volume. When the tax was introduced in 2022/23, this figure was 1.399 million tonnes, or 41 percent. Tax revenues for 2025/26 amounted to £250 million, which was four percent lower than the previous year's £261 million. Statistics also show a gradual decline in revenues since the introduction of the PPT.
More packaging reaches recycling threshold
Out of the total 2.97 million tonnes, 1.863 million tonnes were exempt from tax or subject to tax relief. The largest share was made up of 1.506 million tonnes of plastic packaging with a recycled content of at least 30 percent. This corresponds to around 51 percent of the total reported packaging volume. In 2022/23, the figure was 1.29 million tonnes. HMRC recorded the previous peak in 2024/25 with 1.569 million tonnes.
A further 337,000 tonnes were exported, were intended for export or were further processed. Around 20,000 tonnes were accounted for by plastic packaging for the immediate packaging of human medicines. In total, as of 13 August 2026, according to the authorities, 5,142 companies were registered for the Plastic Packaging Tax.
Source: HM Revenue & Customs
