Landfill tax regulation and the Finance Act 1996

Landfill tax is paid on top of normal landfill fees by businesses and local authorities that want to dispose of waste using a landfill site. It is designed to encourage businesses to produce less waste and to use recycling services. VAT chargeable is calculated on the value of supplies, inclusive of landfill tax.

2007 Budget: The Chancellor Gordon Brown has announced an increase from April 2008 in the Standard rate of Landfill Tax by £8 per tonne per annum until at least 2010/11. This means the current rate of £24 per tonne per annum in April 2007 will be increased to £32 per tonne per annum from April 2008. This is a 32% annual increase and will encourage businesses to do the right thing for their site, CSR and the environment by recycling more and diverting recyclable materials from landfill sites. Think about the benefits of recycling now and react. Look into your procurement activities to further reduce the volumes of waste from your office.

There has also been an increase in the Lower rate of Landfill Tax from £2 per tonne per annum to £2.50 per tonne per annum from April 2008.


The producer responsibility regulations 1997

By adopting the principle of "producer responsibility", the UK Government has implemented the EC Directive on Packaging and Packaging Waste (94/62). The environmental costs of packaging are placed on those who produce and use it. Currently, this affects only businesses with a financial turnover of £2 million or more, or produce 50 tonnes of packaging waste or more per annum.

The regulations set out recovery and recycling targets for manufacturers (6%), converters (9%), packers and fillers (37%) and sellers (48%).