Government urged to scrap proposed plastic tax on silage wrap

The government is facing calls to scrap a proposed plastic tax on silage bale wrap that would cost farmers £200/t.

In December last year, HMRC published guidance which, for the first time, indicated that silage film would be liable for the plastic packaging tax (PPT) that will come into force on 1 April 2022.

Concern has been raised that silage wrap will fall within the definition of packaging despite its primary purpose being to ensure harvested grass can be fermented into silage.

See also: Clear bale wrap to revolutionise farm recycling

Nigel Mills, MP for Amber Valley in Derbyshire, urged the government to reconsider imposing the “seriously damaging” tax on farmers, who are already facing other spiraling input costs and increased market competition from abroad.

“According to estimates, the £200/t would increase the cost of silage film by roughly 10% – a cost that farmers’ rivals around the world, from where we import much meat, do not have to bear,” Mr Mills told a Westminster debate about the tax on Tuesday (18 January).

He said that levying the tax would not help fulfil the government’s intention of increasing recycling because the silage film cannot include any recycled plastic if it is to properly ferment the grass.

The tax could instead hinder a voluntary scheme already put in place by the agricultural industry to collect the plastic so it can be recycled, Mr Mills said.

Green scheme

Farmers can choose to pay £60/t to have the wrap collected so it can be recycled, as part of an Agriculture Plastics Environment (APE) scheme.

Mark Webb, chairman of the Green Tractor Scheme, the group that represents independent farm plastic collectors, said £200/t would add £5/roll to the cost of bale wrap and could jeopardise farmers paying the voluntary APE levy.

NFU deputy president Stuart Roberts said the union wanted the government to improve the UK’s plastic recycling facilities to help boost recycling rates of more contaminated, less desirable plastics such as silage wrap.

“We do not believe silage wrap should be considered as packaging, as without the wrap, the silage will not undergo the fermentation required, which is a crucial part of the silage manufacturing process,” Mr Roberts said.

“We therefore call on HRMC and Defra to reverse its decision and return to the well-established position of silage wrap being classified as a ‘non-packaging product’.”

Farmers Weekly has contacted HMRC for comment.