The government's new packaging tax, part of the Extended Producer Responsibility (EPR) scheme, has faced criticism from senior UK industry leaders. They label it as economically damaging and express concerns over its impact on various sectors. Producers will incur costs for recycling packaging starting in October. Although the final fees are lower than anticipated, businesses argue this will lead to increased prices for consumers. The packaging tax particularly affects glass users who face substantial costs due to the weight of the material, exacerbated by previous national insurance increases affecting retailers.
Senior figures from various UK industries warn that the government's new packaging tax will be detrimental, with increased costs potentially passed onto consumers or leading to business relocation.
The British Retail Consortium estimates that the new Extended Producer Responsibility scheme will impose a £2 billion burden on retailers, compounding recent charges from national insurance hikes.
Business leaders criticize the EPR scheme for failing to support a circular economy effectively, claiming it adds excessive costs, particularly for businesses reliant on glass packaging.
Despite adjustments to fees, critics argue that glass remains unfairly taxed due to its heavier weight, leading to higher overall costs compared to other materials.
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