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

The UK’s ‘Aggregate Levy’ applies to aggregate which in the UK is deemed to consist
of sand, gravel and rock, with the following exceptions:
655
� Materials such as clay, slate and shale, which are not strictly aggregates but
which are used for similar purposes;
� Minerals (mainly for industrial use) whose extraction necessarily involves the
extraction of stone, gravel or sand; and
� Coal, metals and peat.
The levy is applied to materials which are:
� Quarried in the UK;
� Mined underground in the UK;
� Dredged from UK waters; or
� Imported into the UK.
46.2.1.2 Variations in the Level of the Tax and the Basis for the Tax
The tax in Denmark is based on volume (m 3) of material extracted and the tax
currently stands at €0.67 per m 3 . The revenue generated goes directly to the State’s
general budget as well as towards subsidy schemes, which support waste-related
initiatives in the fields of waste prevention, recovery and recycling. 786
In Sweden the tax is levied on the basis of weight and the current level of tax is €1.43
per tonne of extracted material. 787
In the UK the aggregate levy is also levied on a weight basis and currently stands at
£1.95 (€2.34) per tonne (increased from £1.60 (€1.92) per tonne in April 2008 to
account for inflation). 788
At the time of introduction of the UK tax, there was some concern regarding imports
and exports between Northern Ireland, which was due to implement the aggregate
levy, and the Republic of Ireland, which was not. The discontinuity across countries
was likely to have a negative impact upon the profitability of the industry in Northern
Ireland relative to those in the Republic. This resulted in Northern Ireland setting up
an aggregate levy tax relief scheme whereby 80% relief from the tax was granted
(meaning the levy costs £0.32 or €0.38) where a business registers with Customs
and Excise (now HM revenue and Customs) and commits to undertaking
environmental improvements on their site 789 .
786 Converted using an exchange rate of €1.2 = £1.
787 Converted using an exchange rate of €1.2 = £1.
788 Converted using an exchange rate of €1.2 = £1.
789 Department of the Environment, Northern Ireland, Aggregates Levy Credit Scheme, Accessed 20 th
January 2009,
http://www.doeni.gov.uk/index/protect_the_environment/local_environmental_issues/aggregates_lev
y_credit_agreement_scheme.htm
International Review of Waste Policy: Annexes