Published by HMRC on 18 May 2026, the 12-week consultation will assess whether businesses claiming exemptions from the PPT should be required to use certified evidence for mechanically recycled plastic content.
According to the government, it intends to explore concerns around fraudulent or inaccurate recycled content claims and seek views on introducing mandatory third-party certification for plastic packaging containing mechanically recycled plastic.
The consultation follows previous government announcements confirming that chemically recycled plastic will require certification from April 2027 when a mass balance approach is introduced for PPT.
Plastic Packaging Tax
PPT was introduced in April 2022 to encourage the use of recycled material in plastic packaging.
Packaging containing at least 30% recycled plastic is exempt from the tax, which currently stands at £228.82 per tonne for packaging below the threshold.
However, HMRC said industry stakeholders have continued to raise concerns about the robustness of evidence used to support recycled content claims, particularly for imported packaging.
According to the consultation, the government is considering whether certification could “mitigate the risk of fraudulent or erroneous claims”, standardise evidential requirements and improve compliance activity.
The document notes that while HMRC currently has “very little evidence” of widespread fraud, industry bodies including the British Plastics Federation (BPF) and RECOUP have repeatedly called for stronger verification systems.
Concerns have centred on imported packaging and the difficulties of verifying recycled content through complex international supply chains.
How the proposed system would work
Rather than mandating a single certification scheme, the government proposes allowing businesses to choose from recognised third-party schemes that meet minimum legislative standards.
These schemes would focus on chain-of-custody verification and traceability of recycled material, with audits carried out by accredited certification bodies.
Under the proposed approach, businesses throughout the supply chain – from recyclers through to finished packaging manufacturers – would need to hold certification in order for PPT exemptions to apply.
Importers would also need to obtain valid certificates from overseas suppliers.
HMRC said the proposed framework would align closely with the certification model already being developed for chemically recycled plastic packaging.
The consultation closes on 10 August 2026, with responses to inform any future legislative proposals.
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