The UK government has opened a consultation on potential changes to the Plastic Packaging Tax (PPT), including stricter verification rules for recycled plastic claims.
Issued by HMRC on 18 May 2026, the consultation will run for 12 weeks and examine whether companies seeking PPT exemptions should provide certified proof for mechanically recycled plastic used in packaging.
The government says the review is intended to address concerns about inaccurate or potentially fraudulent declarations relating to recycled content.
It is also gathering feedback on the possible introduction of compulsory third-party certification for packaging that contains mechanically recycled plastics.
This follows earlier announcements confirming that chemically recycled plastics will require certification from April 2027, alongside the adoption of a mass balance accounting approach under the PPT framework.
The Plastic Packaging Tax
Introduced in April 2022, the Plastic Packaging Tax was designed to encourage greater use of recycled plastics in packaging production.
Packaging made with 30% or more recycled plastic is exempt from the levy. Packaging that falls below this threshold is currently taxed at a rate of £228.82 per tonne.
HMRC stated that businesses and industry groups have continued to express concerns about the reliability of evidence used to support recycled content declarations, particularly where imported packaging is involved.
The consultation document says certification requirements could help reduce the likelihood of false or inaccurate claims, create more consistent evidence standards, and strengthen enforcement efforts.
Although HMRC noted that it currently has limited evidence of widespread fraud, organisations such as the British Plastics Federation (BPF) and RECOUP have repeatedly argued for more robust verification procedures.
Much of the concern relates to imported materials and the challenge of tracking recycled content across complex international supply chains.
Proposed Certification Model
Rather than introducing a single mandatory certification provider, the government is considering a system in which businesses could select from approved third-party schemes that meet defined legal criteria.
The proposed schemes would focus on traceability and chain-of-custody checks for recycled materials, with inspections carried out by accredited auditors.
If implemented, companies across the supply chain – including recyclers and packaging manufacturers – would need certification for the PPT exemption to apply.
Importers would likewise be expected to secure valid certification from overseas suppliers.
HMRC added that the proposed framework would closely mirror the certification system currently being developed for chemically recycled plastic packaging.
The consultation period ends on 10 August 2026, and responses will help shape any future legislative changes.
