Plastic Packaging Tax: What the Latest Figures Reveal

What is Plastic Packaging Tax (PPT)?

The Plastic Packaging Tax came into force in April 2022. It applies to plastic packaging that contains less than 30% recycled content, and the idea is simple. Make using recycled content  more attractive than virgin plastic, and producers will use more of it.

Any business that manufactures or imports more than 10 tonnes of plastic packaging within a 12-month period must register and report to HMRC.

Plastic Packaging Tax volumes continue to fall

Total reported volumes keep falling. Producers reported 2,970 thousand tonnes of plastic packaging in 2025/26, down from 3,433 thousand tonnes in 2022/23. That confirms a trend of declining volumes, and suggests businesses are using less plastic packaging overall – through redesigning packaging, lightweighting or shifting to materials that sit outside the tax.

Taxable volumes also fell – from 1,399 tonnes in 2022/23 to 2,970 tonnes in 2025/26 when  37% of all UK plastic packaging fell within scope of the tax – reflecting a trend of decline from the initial 41% in 2022/23.

Recycled content growth shows Plastic Packaging Tax is working

Here's the encouraging part. In 2025/26, 51% of plastics met the 30% recycled content threshold. That proportion has grown steadily since the tax was introduced, with the highest rate recorded in 2024/25.

That matters. It shows the tax is doing what it set out to do – increasing use of recycled content in plastic packaging.

Plastic Packaging Tax revenue falls as compliance improves

PPT revenue fell 4% to £261m in 2025/26. On the face of it a falling tax take might look like a problem, but for an environmental tax it's often a sign of success. When a tax is designed to change behaviour, less revenue can mean the behaviour is changing.

That said, the rate itself continues to rise. It reached £223.69 per tonne in 2025/26, up from £200 per tonne when the tax began in 2022/23. So while fewer tonnes are liable, each liable tonne now costs more. The businesses still paying are paying more than ever.

Plastic Packaging Tax Changes and HMRC Requirements for 2026/27

HMRC ran a consultation that closed on 10 August. It covered recycled content certification requirements and proposed revisions to the 2026/27 tax rate. The direction of travel is clear. Evidence of recycled content is going to face more scrutiny, and self-declared figures alone may no longer be enough.

If your recycled content claims rest on supplier assurances or informal records, now is the time to check how well they'd stand up. The bar for proof is rising.

What the latest Plastic Packaging Tax figures mean for your business

Three things stand out from this year's figures. Plastic use is falling, recycled content is climbing and the cost of getting it wrong is going up. Whether you manufacture packaging here or import it, the value of accurate data and solid evidence has never been higher.

Tracey Joyce, Data Services Delivery Manager at ERP UK, flagged some common misunderstandings:

“The 10-tonne plastic packaging threshold catches a lot of firms that are not producers under EPR for packaging. The different pieces of legislation have different definitions and thresholds. We also find companies assuming that their use of recycled content means they don’t need to register and report to HMRC.”

Getting your recycled content verified properly protects you from paying tax you don't owe. It also protects you from claiming an exemption you can't back up.

Reduce Your Plastic Packaging Tax Risk with Expert Compliance Support

ERP UK contact details