Under the plans, control over Stamp Duty and Landfill Tax will be devolved to the Welsh Government – the first Welsh taxes in 800 years. However, this is unlikely to mean that the rates of taxation charged for landfill in Wales will differ from those in England and Scotland.
Landfill Tax will be replaced with a ‘Landfill Disposals Tax’ under the proposals, which were rubber stamped by Assembly members as part of the Tax Collection and Management Bill.
The Bill puts in place the legal framework needed for the management of devolved taxes in Wales, this includes the establishment of the Welsh Revenue Authority, which will oversee the collection of taxes.
Enforcement
The Welsh Government has identified Natural Resources Wales as its preferred partner to undertake the compliance and enforcement of the tax.
A consultation was carried out in 2015 on the transfer of control of landfill tax from Whitehall to Cardiff – which outlined the Welsh Government’s intention to ‘modernise’ the administration of the tax and minimise burdens on businesses.
The Welsh Government is also examining the implementation of a ‘Loss on Ignition’ testing regime to determine the suitability of material for the lower and standard rates of landfill tax, similar to that in place in England.
However Welsh business minister Jane Hutt also claimed that the new tax would ‘maintain consistency’ with those in England and Wales.
Commenting on the passage of the Tax Collection and Management Bill this week, Ms Hutt said: “Once law, the Tax Collection and Management Bill enables us to make the essential arrangements for our new devolved tax responsibilities and paves the way for us to put in place taxes that are more suited to Welsh circumstances and preferences – the first Welsh taxes in 800 years. This new tax legislation will make a real difference to people’s lives.
“We have worked closely with those who will be affected by these new powers and responsibilities whilst developing this Bill. Civil society, businesses and taxpayers in Wales deserve a system of taxation that is fundamentally simple, fair, transparent and – where appropriate – consistent with existing UK tax arrangements.”
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