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Three-year plan to skew packaging levy in line with recyclability

PackUK has published a three-year plan for reducing the relative tax paid by suppliers of highly recyclable containers.

The organisation, which runs the controversial extended producer responsibility scheme for packaging, set out how it would alter fees through to 2028.

PackUK last week published the final base fees for obligated firms to pay on protective and containing material placed on the market in 2025/26.

Glass will be charged at £192 per tonne, aluminium at £266 per tonne and plastic at £423 per tonne. For the full list see here.

However, from next year, a ‘modulation factor’ of 1.2 will be applied to a complex equation to adjust fees according to the recyclability of material used.

This will rise to 1.6 in 2027 and 2.0 in the following year as the scheme administrator looks to gradually encourage more sustainable packaging choices.

Recyclability will be judged according to the methodology producers must use to report their tonnages.

This system uses a green/amber/red traffic-light system to classify materials.

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