Packaging Tax Will Push up Prices for Consumers, Say Industry Bosses
The extended producer responsibility scheme is expected to raise food inflation by 0.5%, with over 80% of the tax cost passed to consumers, increasing retail and household expenses.
- The extended producer responsibility packaging tax takes effect on October 1, requiring UK companies to report detailed packaging data and pay fees based on materials used.
- This policy follows last year's Budget where retailers faced £5 billion in additional employment costs from rising national insurance and living wages, limiting their ability to absorb new taxes.
- The British Retail Consortium survey found 85% of retailers report significant compliance burdens and that 78% plan to reduce packaging volume, while 85% aim to increase sustainable materials.
- Sean Murphy of Encirc described the recently introduced tax on glass bottles as a costly misstep for both the economy and the environment, warning that it threatens thousands of jobs across supermarkets, pubs, and glass manufacturing, and is likely to lead to higher prices for consumers.
- Industry leaders urge the government for clarity on consumer and environmental benefits and call for legal safeguards to ensure EPR funds improve local recycling and do not become an inflationary burden.
15 Articles
15 Articles
UK packaging tax likely to push costs onto consumers, warns retail body
The extended producer responsibility (EPR) scheme, effective October 2025, requires retailers and manufacturers to cover household packaging costs.The post UK packaging tax likely to push costs onto consumers, warns retail body appeared first on Retail Insight Network.
Shoppers to Pay Price of New Packaging Tax
Over 80% of the costs for the new packaging tax – the Extended Producer Responsibility (EPR) scheme – are likely to be passed onto consumers, according to new figures from the British Retail Consortium (BRC). The survey of leading retailers highlights the “significant financial burden” that EPR fees, which came into effect at the start of this month, will place on UK retailers and households. With prices set to increase as a result, the BRC is c…
New Packaging Tax To Drive Up Prices
New figures from the British Retail Consortium (BRC) suggest that over 80% of the costs of the new packaging tax – the Extended Producer Responsibility (EPR) scheme – are likely to be passed onto consumers. Following last year’s Budget, retailers (more…) The post New Packaging Tax To Drive Up Prices appeared first on KamCity.
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