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

The UK has adopted an approach whereby revenue from the tax is put into an
Aggregate Levy Sustainability Fund (ALSF). This is used to deliver environmental
benefits through awareness raising campaigns and promoting use of recycled
aggregates, demand for which is being increased through development of quality
standards for secondary aggregates (Section 47.0). Revenue is also recycled to
industry through a 0.1% reduction in employer National Insurance Contributions. 790
The level of tax implemented is considerably higher in the UK, as a proportion of
price, than elsewhere. In the UK the tax on aggregates equates to 20% of the average
price for sand, rock and gravel compared to the case of Sweden, where the tax
equates to only 12% of the average price.
The UK recently saw an increase in the rate of the levy, but generally, the level of
aggregate tax has been fairly stable over time. Sweden, however, has introduced
incremental increases in the tax over time.
46.3 Key Organisations Involved in Implementation and
Management
In all three cases, central government is responsible for original implementation,
management and administration of the policy. Specific country details are described
below:
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� The Danish Ministry of Taxation designed an amended law in 1992 and is
currently responsible for the implementation and administration of the tax. In
doing so they monitor the levels of extraction taking place;
� The Gävle Tax Authority is responsible for the implementation of the tax in
Sweden; and
� HM Revenue and Customs, the revenue collecting arm of UK Government,
implements and manages the UK aggregate levy.
The systems rely upon commercial extractors being registered with the above
organisations. These companies must account for the amount of raw material they
use in order to calculate the amount of tax they must pay.
46.4 Evaluation Studies Available
This ECOTEC study compares the Danish, Swedish and UK aggregate taxes.
� ECOTEC Research and Consulting (2001) Economic and Environmental
Implications of the Use of Environmental Taxes and Charges in the EU and its
Member States, Accessed 21 st October 2008,
http://ec.europa.eu/environment/enveco/taxation/pdf/ch11_aggregated_tax
es.pdf
790 Defra (2006) Aggregates Levy Sustainability Fund in England 2002-2007, Accessed 20 th January
2009, http://www.defra.gov.uk/environment/waste/aggregates/pdf/agglevy-summary.pdf