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‘Packaging tax’ to force further price rises
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City AM
‘Packaging tax’ to force further price risesGlass is the most expensive material for producers to use under the recently released EPR bands (Carla Gottgens/Bloomberg)UK businesses will be forced to pass the vast majority of costs incurred by a new packaging tax onto consumers, in a move that will stoke already rampant food inflation and compound financial pressures on hard-pressed households.
The BRC’s latest survey – published the day the new levy comes into force – also found the packaging tax to have significantly added to firms’ administrative workload at a time when many are already drowning in red tape compliance.
Fears of further resource being spent on adhering to the complex packaging tax, combined with the fees themselves, will compound already existing food inflation, which has seen the pace of price rises climb to a three-month average of 4.1 per cent.
But the packaging tax is also a multi-billion pound levy being paid by consumers during a cost-of-living crisis,” said Andrew Opie, director of food and sustainability at the BRC.
Alongside the research, the industry body also demanded that ministers guarantee the packaging tax be ringfenced for local authorities to use on improving recycling.