Warning new ‘packaging tax’ likely passed on to consumers

• The UK's new Extended Producer Responsibility (EPR) scheme, a 'packaging tax', is expected to place a significant financial burden on retailers and households.
• Industry leaders warn that over 80 per cent of the tax's cost will likely be passed on to consumers, potentially adding 0.5 per cent to food inflation.
• Retailers report a substantial increase in administrative and compliance burdens due to the EPR, following previous rises in employment costs.
• The British Retail Consortium (BRC) is calling for greater clarity on how consumers and the environment will benefit, and for legal ring-fencing of funds for local recycling improvements.
• Glass bottle manufacturers, such as Encirc, criticise the weight-based levy as an “own goal”, predicting price increases for wine and spirits and urging the government to pause the policy.

IN FULL

Food prices could rise again thanks to new ‘packaging tax’