The UK tax authority plans to review the country's plastic packaging tax (PPT), which was introduced in the UK in April 2022 and collected £276 million (€318 million) at the end of the financial year in March 2023.

The UK government introduced a plastic packaging tax in April 2022 (Credit :Pexels/Pixabay)

In a statement, the British government said the tax Office would assess the PPT and "the Treasury will be consulted if necessary." This is a continuation of the government's commitment to increasing transparency and accountability. The results of this assessment will ensure that important lessons are learned to guide the development of future PPT and broader policy measures."

Related: UK government announces revenue from plastic packaging tax

PPT aims to encourage more companies to use recycled materials in their products. Plastic packaging components produced and sold by manufacturers and importers need to contain at least 30% recycled plastic and not less than 10 tons per year.

The rate is currently £210.82 per tonne, up from £200 per tonne initially. The British government said it set the higher amount to take into account inflation.

Zoe Brimelow, director of British packaging manufacturer Duo 2023, said the tax has succeeded in stimulating demand for recycled plastic packaging while generating significant revenue for the government.

However, she said businesses that complied with the tax or bought new equipment and processes as a result should be told how to spend the "hundreds of millions of pounds" of extra revenue.