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A manufacturer of plastic trays queried whether they are liable for the special tax on non-reusable plastic packaging when processing already taxed plastic coils. The DGT ruled that, as no additional plastic is incorporated, the manufacturing taxable event does not occur, and therefore the company is not a taxpayer.
This ruling clarifies that the manufacturing stage for tax purposes only applies when new plastic material is added to the process, rather than simply reshaping existing taxed materials.
The tax team reviews your specific situation.
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