“The Landfill Tax (Site Restoration and Quarries) Order 1999 (SI 1999 No. 2075) came into force on 1 October 1999, exempting around 400 inert waste landfills from the Landfill Tax. The Order also provides a tax exemption for inactive waste used in landfill restorations, specifically excluding materials used in site engineering or as a cap to the landfill site. To qualify for the exemption, a site operator must give written notification to HM Customs & Excise that he intends to commence restoration of a landfill site, defining restoration as work that is required by a planning consent, waste management licence or resolution authorising disposal of waste on or in the land to be carried out after the completion of waste disposal operations. To qualify under the exemption for the purposes of filling existing or former quarries, there must be a planning consent which requires the quarry or former quarry to be refilled.
(SO, July 1999)
The thirteenth report from the House of Commons Select Committee on Environment, Transport and Regional Affairs was published in July on “The Operation of the Landfill Tax”. The majority of the evidence received during the inquiry strongly supported the introduction of the Landfill Tax and the Committee also supported, in principle, the introduction of additional environmental taxes. The Landfill Tax and the associated credit scheme, however, has had undesirable effects, namely an increase in fly-tipping, the imposition of a large financial burden on local authorities and has been seen to be set at a level which is too low to change waste disposal options, highlighting the issue of whether future environmental taxes should have the “polluter pays principle” as the main aim, or the intention of changing behaviour, where a higher rate of tax may be required. The report concluded that the Environmental Bodies Credit Scheme is too complicated making it difficult to monitor the quality of projects (see below).
(SO, July 1999)
HM Customs & Excise have announced a change to the Landfill Tax Environmental Bodies Scheme through an extra statutory concession. The Environmental Bodies Credit Scheme allows landfill operators to claim up to 90% landfill tax credit against donations they make to environmental projects, subject to these credits not exceeding 20% of their annual tax bill. The change, which took effect on 6th September 1999, enables operators who use the scheme to have up to an additional month every quarter to claim a tax credit. It is hoped that this will encourage more operators to join the scheme.
(HM Customs & Excise News Release,
6th September 1999)
