Plastic Packaging Tax – Important News For Farmers


The Government has proposed a controversial plastic tax on silage film, which will cost farmers £200/tonne.

HMRC announced in December 2021 that silage film would fall under the scope of the Plastic Packaging Tax (PPT) that is due to come into effect on April 1st 2022.

Silage is produced, by fermentation, from grass and other crops, with silage film essential for this process – a fact most of us know.

However, under this new tax, silage film is defined as packaging, and while the minister agrees that the film is an integral part of the silage-making process, it still falls within the definition of the tax.

She said: “That definition is targeted so that it does not include plastic packaging products that are essential for goods to be used, in contrast to products that are essential for goods to be manufactured.

“Therefore, products such as tea bags, coffee pods, inhalers and lighters are not taxable because the product contained by the packaging simply could not be used by the end-user without the packaging. However, that is not the case for silage film”.

Without silage film, farmers cannot make silage because film IS part of the process, and ministers misunderstand this crucial point.

Farmers and businesses are currently working hard to get this point across to ministers, but this fundamental fact seems to have been missed or ignored altogether.

We will continue to post updates on this topic as soon as we have them.

Leave a Reply

Your email address will not be published.

Related Topics