Security Matters is commercialising its digital blockchain platform to minimise tax on UK companies meeting the new 30% tax on plastic packaging, being introduced in April 2022. Image: Getty
Tech
Security Matters is commercialising its digital blockchain platform to minimise tax on UK companies meeting the new 30% tax on plastic packaging, being introduced in April 2022.
Security Matters (ASX:SMX) has a solution in hand for UK companies trying to get their heads around the Johnson government’s plastic packaging tax (PPT) by commercialising its digital twin blockchain platform.
The company who was awarded the 2021 Global Waste Management & Recycling Digitalization Technology Innovation Leadership Award by globally respected reputable consulting company, Frost and Sullivan, certify materials and provide automated auditing to help reduce the time and resources burden of complying with the PPT, which will come into effect in April.
The PPT will be levied on plastic packaging containing less than 30% recycled plastic at a rate of £200 per metric tonne.
SMX focuses on marking and digitising objects to facilitate development of the global circular economy so has a well-prepared solution to assist companies become compliant.
Under the PPT companies will be subjected to increased record keeping and sampling requirements, with SMX’s technology automating the process.
SMX said its unique drop-in marking solution survives all processing, providing plastic recycled producers and sellers with the ability to mark all kinds of plastic recycled materials digitally and physically, ensuring accurate and efficient auditing systems.
By using its technology to achieve compliance with PPT requirements, SMX said companies shift from a linear approach to the economy to a circular, benefiting from supply chain transparency and greater resource efficiency, including higher rates of recycling and reduced greenhouse gas emissions.
Among the benefits for companies:
The broad tax will be applied to any packaging which has been classified where plastic is the heaviest component and includes greener plastics which are biodegradable and compostable.
Among limited exclusions is plastic packaging for licenced human medicines, to import multiple goods safely into the UK and packaging used in aircraft, ship or railway goods stores.
The UK is one of the latest countries to implement a plastic packaging tax. In the EU a rate of €800 per tonne was introduced on January 1, 2021. The Netherlands, Italy and Spain have all announced intentions of introducing a tax, while more countries are expected to follow.
SMX’s reputation as a leader in the digitised circular economy globally continues to grow through a global pipeline of strategic partnerships and awards.
It recently joined NextCycle Michigan, with the company’s blockchain digital platform a key component of Michigan State’s aim to lead the world in becoming the first sustainable automotive industrial region.
The company has also joined the Global Platform for Sustainable Natural Rubber (GPSNR) and 4evergreen, a cross-industry alliance committed to the circularity of global fibre-based packaging.
SMX Founder and CEO Haggai Alon said the company was excited to be now commercialising its technology to assist UK companies comply with the new PPT.
“SMX’s ability to enable companies to comply with new plastic regulations, by being able to identify and report on its recycled content used in plastic packaging in the UK is revolutionary and economical. It is SMX’s belief that by implementing our technology, the cost of this tax will become minimal with automated systems implemented to ensure there is minimal impact on staff costs.
In addition, our technology enables companies to no longer be dependent on human and paper auditing while being able to be transparent on sustainability measures and KPI’s”
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
