Baling contractors using more than 10t of plastic a year need to register with HMRC and pay the necessary taxes or face potential fines for non-compliance.
The plastic packaging tax was introduced in 2022 and covers both netwrap and baler twine, but does not include silage wrap.
It is taxed at £210.82/t, which equates to an additional £4.20 for a 20kg pack of heavy twine and £6.50 for a 3,000m roll of netwrap.
See also: Plastic tax making twine producers uncompetitive
Large-scale baling contractors who use more than 10t are being urged to check that they are compliant, with many reportedly unaware they are liable for it.
Graham Robson, technical manager at Tama Europe, said that only three companies are registered and pay the tax due.
“All the others either refuse to recognise it, feel they are not liable for it, or simply refuse to pay it,” said Mr Robson.
This is creating an uneven playing field for companies selling these products, he said, and could also make customers of these companies liable for the unpaid tax.
Steve Price, head of agriculture at Zeus Packaging, said: “Our understanding is that the tax covers netwrap and baler twine which are used for carriage and transportation; plastic used for fermentation like silage pit covers and bale wrap are exempt.”