Plastic Tax: What Does It Mean for FIBC Bag Manufacturers

Impact on FIBC Bag Manufacturers



With global plastic taxes finally in place, the burden of responsibility for virgin plastic waste is shifting from the consumer to the actual producers. Earlier this year, the state of California and the U.K. government introduced significant plastic reforms for packaging FIBC bags. This is a wake-up call for all company owners in consumer-facing industries about how plastic taxes will affect FIBC Bulk Bag Manufacturers.

Major factors that will cause international organizations to take action on plastic taxes in the near future include the high societal and economic cost of dealing with plastic waste, increasing public awareness about sustainability, a better understanding of the relationship between plastic waste and climate change, bleak scientific predictions about the planet’s future, and recent extreme weather events.

The Tax Story

If you produce or import packaging FIBC bags in the UK that doesn’t contain at least 30% recycled plastic, you’ll now have to pay a new tax. Plastic packaging is packaging that’s mostly made of plastic by weight.

This tax will not apply to any plastic packaging that contains at least 30% recycled plastic, or any packaging that is not predominantly made of plastic by weight. Imported plastic packaging will be subject to the tax, whether the packaging is unfilled or filled.

Financial Impact

The tax burden will differ for businesses that are direct or indirect taxpayers.

Direct taxpayer

These are businesses which are packaging bags manufacturers or importing the packagings. The fibc jumbo bag manufacturer will be required to submit data to HMRC (Her Majesty’s Revenue and Customs) on a quarterly basis:

The total weight of large bulk bags manufactured or imported.

Details of the packaging that contains minimum 30% recycled content and is therefore not liable for the tax.

Details of any other packaging that is exempt from the tax.

Details of any packaging that is exported and on which the tax may be reclaimed.

Indirect taxpayer

These businesses and consumers will not be the first ones to pay the tax in the UK, even though they are the ones who purchase plastic packaging.

How FPS is Dealing

FPS has an End-to-End approach that has positive impact on carbon footprint in FIBC manufacturing process.

Steps taken:

Product Optimization – The innovative and new product design features of the FIBC manufacturing process uses minimal raw materials to create a product that is reliable and consistent.

As FIBC Bag Manufacturers, we are focused on process excellence – this means consuming less energy and water, as well as using renewable energy sources.

Internal plant waste –  Re-process and Re-use streams: waste diversion rate over 95% to zero waste.

Transport & Distribution – Optimized loading FIBC’s / pallet and full truck / container direct deliveries to minimize emissions.

REBU is dedicated to providing the best possible experience to our customers by reconditioning high end FIBC bags. As a market leader and premier packaging bags manufacturers, we offer a comprehensive service that focuses on safety, sustainability, and circularity. Our goal is to provide our customers with the best possible product and service so that they can continue to use our products for years to come.


As a fibc jumbo bag manufacturer, we support plastic tax legislation, but we know that tax laws are notoriously complicated. There is a lack of global coordination on implementation, which impacts us, the FIBC Bag Manufacturers. It might be tempting to wait for the end of the world, but the only way to future-proof FIBC Bulk Bag Manufacturers business is to act now. You need to embrace the new age of plastic tax legislation and act decisively. Read about our sustainable packaging solution for more information.

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