BHETA’s lobbying campaign – joint with members – aimed at making DEFRA rethink its Extended Producer Responsibility (EPR) scheme in terms of proposed targeting, scope and costs, has seen its first result.
The campaign has seen a somewhat revised tariff level from DEFRA, that will see an annual saving of £4.1 million extrapolated across the BHETA membership, against the figures announced in August.
Will Jones, BHETA’s coo commented: “The new reduced tax rates announced by DEFRA in September are a great first step and very much in the right direction, but it is only a first step. The jump in costs for all product suppliers who use packaging is still eyewatering, rising to an annual (revised scheme) £12.5m* from the current £1.7m of packaging tax under the current PRN scheme.
“Also, the targeting of suppliers and own label retailers – and no-one else – is still inequitable. I welcome this news on tariff reduction, but the campaign is still very much on. We need acknowledgement of the wider issues and the remaining rise in costs, which is huge and unsustainable.”
The EPR scheme is an additional tax, which targets branded product suppliers and retailers of own label goods. It represents a shift in financial responsibility for the treatment of household waste and packaging, moving it 100% to suppliers and retailers.
To date, the cost of domestic kerbside recycling disposal is split roughly as 10% by producers through PRNs; 10% by retailers; 80% by the taxpayer. Under EPR, this will change to the whole cost of collection and disposal met by suppliers through modified PRNs.
Packaging producers affected are any business, subsidiary or group that is not a charity, with annual turnover over £2m and responsible for more than 50 tonnes of packaging in a calendar year. Any business with turnover of £1M plus and responsible for 25 tonnes or more of packaging in a calendar year, must report their detailed EPR data.
Thanks to business lobbying activity by individuals and trade associations such as BHETA, the reduction in tariffs announced by DEFRA includes a proposed 27% reduction in the Intermediate ‘Paper or Board’ packaging charge and a 17% reduction in the Intermediate ‘Plastic’ packaging charge.
Will commented: “As we can all see the potential saving is not insignificant and I’m delighted with the impact of BHETA lobbying so far. We will however, be keeping the pressure on DEFRA and urge all members to continue doing the same. The hike in costs is still very high despite DEFRA’s backdown to date.
“We also still have the unfair targeting issue to address as UK producers are being asked to pay the price of processing all products sold into the UK, from both UK and overseas suppliers.”
