Silage wrap exclusion from packaging tax welcome news for industry

The Farmers’ Union of Wales (FUW) has welcomed an announcement from HMRC that silage wrap will not be subject to agriculture packaging tax from 1st April 2022, as it has been recognised as essential for the fermentation of grass.

Without the concession, a tax of £200 tonne on all single use plastic packaging would have been introduced, adding to the financial burden placed on the industry already.

Input costs are at an all time high in terms of energy, fertiliser and fodder costs. With this in mind, HMRC’s decision to exclude silage wrap from the plastic packaging tax for agriculture is welcomed.