The Landfill Tax was
introduced in October 1996 and is levied on waste deposited in landfills. The
objectives of the tax are to
·
encourage waste
producers to minimise the volume of waste generated
·
reduce the amount
deposited in landfills
·
encourage recycling
Landfill operators are liable for the tax on all consignments of wastes
accepted for landfill disposal.
A distinction is made between inactive
waste, which is taxed at £2 per tonne, and other waste at the standard rate of £10 per tonne.
In the March 1999 budget, the Chancellor announced that the standard rate
will be subject to a landfill tax
escalator of £1 per tonne per year for at least another five years,
reaching £15 per tonne in 2004. This is designed to increase the incentive
to re-cycle or incinerate waste (see below)
EXEMPTIONS TO THE LANDFILL TAX
A number of categories of waste are exempt from taxation. These are:
·
dredgings from inland
waterways and harbours
·
naturally-occurring
minerals from mines and quarries
·
domestic pets, buried
in pets' cemeteries
·
wastes from the
remediation of historically contaminated land if the purpose of the
remediation is development, conservation or the provision of amenity, or to
remove the potential harm from pollutants
Areas at landfill sites where waste is sorted, recycled or incinerated
may be designated tax-free areas. Critics
of the Landfill tax argue that it has had little impact on the environment
and has caused a surge in illegal "fly-tipping" in both urban and
rural areas.
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