Wednesday 19th March 2014
There has been a mixed response from industry to today’s Budget announcement that the Government is to adopt loss on ignition testing to determine the rate of landfill tax that will apply to residual material from waste transfer stations.
Commenting on the announcement, Barbara Bell, Head of KPMG’s Environmental Tax team, said: “This is a debate that has raged since the skip tax furore of 2012 and it provokes strong emotions because of the huge difference between the lower and higher rates of landfill tax. Some taxpayers also feel that it is unfair that they should be hit by the full rate of landfill tax at £80 per tonne from 1st April 2014, when they have done everything they can to remove recyclable material from the waste that is delivered to their transfer stations.”
“Loss of ignition testing will be one way to decide landfill tax liability but, whilst welcomed by some waste producers and landfill site operators, others consider that it does not sit easily with the environmental rationale of the tax. Any interested parties should ensure that they partake in the consultation exercise that will be launched later this year.”
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Chancellor’s Budget 2014
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