Promoting the Use of Recycled Plastics: A Taxing Issue

Plastics have become an indispensable part of our daily lives. From food packaging to advanced medical applications, life in the 21st century would not be the same without them. The exponential increase in the production and use of plastics does, however, have significant negative environmental impacts that range from emissions and other pollution associated with the production of plastic, through to the impacts of improper disposal and direct leakage on the environment. The plastic packaging tax (PPT) was introduced in the UK in 2022, with the aim of providing a clear incentive for businesses to enhance a circular plastics economy by using recycled materials in production processes, as well as to motivate businesses to consider climate impact at every stage of the product lifecycle. This paper exposes some of challenges associated with the application of the PPT while proposing several policy options as to how to best address these challenges.