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International Review of Waste Management Policy - Department of ...

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Table 46-1: Main Aggregate Levy <strong>Policy</strong> Objectives<br />

Name <strong>of</strong><br />

<strong>Policy</strong><br />

Year <strong>Policy</strong><br />

Introduced<br />

Objective 1<br />

Objective 2<br />

654<br />

29/09/09<br />

Denmark Denmark<br />

Sweden Sweden<br />

UK UK<br />

Tax on <strong>Waste</strong> and<br />

Certain Raw<br />

Materials<br />

The Law Concerning Tax on<br />

Natural Materials<br />

1990 1996 2002<br />

To reduce<br />

resource<br />

extraction<br />

To increase<br />

aggregate<br />

recycling<br />

To safeguard gravel<br />

resources and water quality<br />

To increase material<br />

substitution to crushed rock<br />

and recycled material<br />

Aggregate Levy<br />

To reduce demand for<br />

aggregates and encourage<br />

recycling<br />

To compensate for<br />

environmental externalities<br />

caused by quarry activities<br />

In summary, the levy aims to reflect environmental costs in the price <strong>of</strong> aggregate<br />

extraction and encourage the use <strong>of</strong> alternative materials such as recycled aggregate.<br />

Recycled materials (if not commercially extracted again) do not fall under the tax<br />

regime in any country where an aggregate tax has been implemented.<br />

46.2.1 Country-specific Characteristics<br />

46.2.1.1 Material Variations in the Scope <strong>of</strong> the Levy<br />

Denmark’s ‘Tax on <strong>Waste</strong> and Certain Raw Materials’ applies to raw materials that<br />

are commercially extracted and consumed in Denmark, or commercially imported.<br />

These include sand, gravel, stones, peat, top soil, clay, chalk and limestone. The<br />

following are described by the ECOTEC report as being exempt from the tax: 785<br />

� Raw materials extracted for coastal projects to protect the beaches against<br />

erosive action;<br />

� Sea bed materials, which originate from maintenance and capital dredging<br />

projects and which are utilised as raw materials;<br />

� Residual products and waste products, which are extracted from already<br />

closed depots;<br />

� Top soil and peat, which are delivered without payment; and<br />

� Raw materials commercially extracted or imported by a business, when the<br />

annual amount is less than 200 m 3 <strong>of</strong> raw materials.<br />

Sweden’s ‘Tax on Natural Materials’, commonly referred to as ‘Gravel Tax’, applies to<br />

gravel, which consists mainly <strong>of</strong> sand, gravel, cobble and boulder size fractions.<br />

785 ECOTEC Research and Consulting (2001) Economic and Environmental Implications <strong>of</strong> the Use <strong>of</strong><br />

Environmental Taxes and Charges in the EU and its Member States, Accessed 21 st October 2008,<br />

http://ec.europa.eu/environment/enveco/taxation/pdf/ch11_aggregated_taxes.pdf

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