A plastic packaging tax on silage bale wrap at a rate of £200/t will affect UK farmers from April 1, 2022. It is hoped that this will offer a “clear economic” incentive for businesses to use recycled plastic in the manufacture of plastic packaging. This is according to a statement from government.
HM Revenue and Customs guidance states the tax will apply to plastic goods with less than 30% recycled content.
The Green Tractor Scheme, launched in 2020, has gauged that this will increase the cost of farm film by £5/roll, and could result in the “collapse” of its recycling scheme.
The Scheme’s chair, Mark Webb, argues that “silage plastic is not classed as packaging plastic”, and that its “primary purpose is to protect the silage and help it mature into a valuable feedstock for feeding their animals”.
Nigel Mills, Conservative, Amber Valley, added that “The impact of charging farmers £200/t to get the plastic in the first place will be that they will not be able to afford the £60/t for collection.”
“We will end up with lower levels of recycling. Farmers just will not pay for the collection, so there will not be a collection. The plastic will not be recycled. Consequently, as a result of the tax, we will end up with less recycling of plastic than we have now.”
He warned that the costs would “fall directly on farmers at a very difficult time”. Mills is pushing for a withdrawal of this guidance before April 1.
LSL News.