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

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announced in the November 1995 Budget, was a change in the tax design,
from a percentage of disposal cost (ad valorem) system, to a weight-based tax.
Furthermore, it was intended that there should be no exemptions from the tax;
and
� November 1995 – Budget announces the tax will be introduced in October
1996.
At the outset typical disposal fees pre-tax for municipal wastes, or non-inert industrial
wastes, were between £7-£25 (approx €11.20-€40.00) per tonne so that the tax
implied an increase in price of between 30-100%. The level of taxation for non-inert
wastes (i.e. those that degrade to produce GHGs) was increased by the method of an
annual price escalator that was first introduced in 1998. Since then the magnitude of
the escalator has increased (initial £1 per tonne escalator over five years to current
£8 per tonne per year over 6 years). As of April 2009, the tax rate is £40 (approx.
€50) per tonne. The tax will rise to a maximum level of £72 per tonne in April 2013.
The tax rate for inert wastes has remained relatively steady with only a 50p increase
to £2.50 per tonne in 2007.
Implemented through central government via the Chancellor of the Exchequer (HM
Treasury) and the annual budget, Figure 52-3 shows the change in tax levels for
active and inert wastes from the implementation of the policy in 1996 to 2013 when
the current escalator expires.
Figure 52-3: English Landfill Tax (£/tonne)
Tax Rate, £
80
70
60
50
40
30
20
10
0
International Review of Waste Policy: Annexes
Changes in England's Landfill Tax since Implementation
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
Year
Active Rate
Inert Rate
The revenues generated from the tax were initially used to allow for a decrease in the
national insurance rate, along with a scheme to fund waste management research
and improvement projects around landfills. Those wishing to utilize the funds had to
register as environmental bodies under an organization named ENTRUST.
With the end of this scheme some 4-5 years ago the funds are now directed to the
Landfill Communities Fund, WRAP, LASU, WIP and various other Defra schemes under