Landfill Tax Regulations 1996
Landfill Tax Regulations 1996
Summary
The landfill tax, which is levied on the disposal of waste in landfill sites throughout the UK, was introduced on 1 October 1996. This aims to encourage waste producers to produce less waste, recover more value from waste (for example through recycling or composting), and to use more environmentally friendly methods of waste disposal.
There are two rates of tax, £2.50 per tonne for inert wastes and £32 per tonne for all other wastes. This will rise each April by £8 per year until it reaches at least £48 per tonne whilst inert waste will be frozen at £2.50 per tonne until 2009/10 The extra revenue produced will be filtered into the Business Resource Efficiency and Waste Programme (BREW).
Implications
The Landfill Tax is currently low when compared to Europe but it is having an effect on construction waste and will increasingly make it more economically favourable to minimise and recycle waste rather than landfill it. Coupled with this is the reduction in the number of landfill sites and capacity in the UK, forcing gate fees upwards and making the transportation of waste materials uneconomical in urban areas. In some rural areas the availability of recycling facilities and the cost of transporting recyclable waste mean that landfilling is often still the favoured option.
Overlaps
This legislation has a similar concept to The Aggregates Levy, as both use a system of charges to encourage more sustainable use of products.
Opportunities
By reducing the amount of waste that is sent to landfill, the construction industry stands to save money. This legislation forces the industry to consider how much waste they are generating, which in turn could make them think about reviewing their purchasing strategies to look for areas where waste can be minimised.
This encourages the industry to look at more sustainable waste management options, such as recycling and composting. This is because under this legislation, if waste is processed in a way which fundamentally changes its properties, (e.g. by composting), it will no longer be liable for the tax.
Guidance
The following website has a news article that outlines the specifics of the legislation, as well as details of the proposed future of the legislation: