Landfill tax applies to the deposit of material as waste to a landfill site. Landfill site operators and controllers are liable to charge and account for the tax at one of two rates. The Landfill Tax was introduced in 1996 by the Treasury as an environmental tax to help reduce the amount of waste going to landfill. Since then costs have steadily risen as an incentive to try to reduce landfill and encourage recycling.
A rate is applied to inert waste that contains no biodegradable material, whilst all other general waste has the standard rate applied. Certain wastes are exempt. Following on from the Spring Budget 2017, the Treasury has confirmed the landfill tax rates which will come in to force from 1 April 2018.
Current standard rates are £86.10 per tonne for standard rate material and £2.70 per tonne for lower rate material. From April 2018 they will increase to £88.95 per tonne for the standard rate per material and £2.80 per tonne for lower rate material. Relatively modest increases really but nonetheless increases to further encourage recovery and recycling of waste materials in the UK.
From the Spring Budget 2017, we also reported on the Packaging Targets which have been set between 2018-2020. Click here to read more.