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Budget announcement brings rise to landfill tax

The 2014 Budget announcement has brought the news that standard and lower rates of landfill tax are to rise in line with inflation from April 2015.

This will mean that any future changes in landfill tax will relate to the Retail Price Index and will be rounded to the nearest 5 pence from April 2015. This follows the increase for active waste that comes into effect this April, which will see a rise from £72 to £80 per tonne.

HM Treasury also offered an insight into the application of the lower rate of landfill tax for fines material. The Treasury has revealed that a ‘loss of ignition’ testing regime will be applied from April 2015 to determine whether material can be charged at the lower rate, which currently stands at £2.50 per tonne.

However, the industry still lacks long term clarity over whether the rate will rise further beyond 2015, with the Government waiting for results of a forthcoming consultation on trammel fines.

The decision comes despite pressure from the Local Government Association calling for the rates to be frozen. 

More information is available on the Waste Management World website >>


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