HM Treasury and HMRC have launched a joint consultation document
on changes to Landfill Tax (LFT). LFT is widely credited with
creating a major shift in behaviour towards recycling and it is
said that over the last five years, 33.8 million tonnes of rubbish
which would otherwise have been sent to landfill has been recycled
saving £1.5Bn.
The aim of the tax is to encourage the disposal of less waste; to
recover more value from waste through recycling and composting, and
to stimulate moves to more environmentally friendly waste
management methods. It is seen as the key driver of the UK's
move away from using landfill disposal and the main hope of meeting
European waste targets under the Landfill Directive in 2010, 2013
and 2020.
However, concern is now being expressed at the proposed
changes.
It has been pointed our that whilst the increase in tax is mooted,
together with a review of the materials likely to attract the
higher rate of tax, there is no indication as to how the tax raised
will be fed back into the industry and local authorities.
There is concern that Landfill Tax which was originally said to be
"tax neutral" and used to fund reductions in NIC for
businesses will become just another stealth tax, like road tax.
This is echoed by the Local Government Association, which is urging
the government to ring fence the tax receipts, so that they can be
applied to provide improved recycling facilities.
Suspicion that the proposed changes are more related to "tax
take" than achieving waste targets, may be fuelled by the
consultation paper itself, which refers in some detail to the
recent Court of Appeal decision which held that certain uses of
materials at landfill sites were exempt from LFT, and the
legislative changes which are now required to reverse this
decision.
DMH Stallard will be responding to the Consultation Paper
reflecting the views of attendees to our seminar on 26th June, when
the key note speaker will be Charles Hendry, Shadow Minister for
Energy.
For more details, search 'Landfill Tax' on
www.hm-treasury.gov.uk
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