The Landfill Tax rates will experience an increase

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Who is likely to be impacted:

Landfill site operators in England and Northern Ireland and businesses registered with HMRC for Landfill Tax.

Overview of the measure:

As outlined in the Spring Budget 2023, both the standard and lower rates of Landfill Tax will see an increase from April 1, 2024. This adjustment aligns with the Retail Price Index (RPI) forecasted at Spring Budget 2023. Rounded up to the nearest 5 pence.

Policy objective:

Landfill Tax is imposed on materials disposed of at landfill or unauthorized waste sites. It aims to incentivise the reduction of material production and promote the use of non-landfill waste management options such as recycling, composting, and recovery. Increasing Landfill Tax rates in accordance with RPI supports the government’s environmental goals.

Background:

Introduced on October 1, 1996, Landfill Tax encourages waste producers. The waste management industry to adopt more sustainable disposal alternatives. It includes a lower rate for less polluting materials and a standard rate for other taxable materials at authorized landfill sites. Scotland gained control of Landfill Tax in 2015, followed by Wales in 2018.

Detailed proposal:

The increased standard and lower rates of Landfill Tax will apply to taxable disposals at relevant landfill sites and unauthorized waste sites from April 1, 2024. These changes will specifically affect England and Northern Ireland. Sites operating without the necessary environmental disposal permit or license will face Landfill Tax at the standard rate for all materials.

The standard rate is increasing from £102.10 per tonne to £103.70 per tonne

The lower rate is increasing from £3.25 per tonne to £3.30 per tonne