The standard rate of Scottish landfill tax (SLfT) would be raised from £91.35 to £94.15 per tonne and the lower rate from £2.90 to £3 per tonne.
The changes will be effective from April 2020, and will bring the rate of taxation in line with the rest of the UK, which the government says it hopes will address concerns about so-called ‘waste tourism’.
Scotland’s public finance minister Kate Forbes said: “The global climate emergency is at the centre of our programme for government and we have already put in place the most ambitious climate legislation and targets of any country. This budget will help deliver on that wold-leading ambition.
“From increased investment in low carbon transport to funding for peatland restoration and forestry, this budget sets out our spending plans to help us deliver the transformation we need across society to transition to net-zero.”
The budget was announced by SNP MSP for Skye, Lochaber and Badenoch Kate Forbes following the resignation of Scotland’s former finance minister Derek McKay. It will be debated and put before the Finance and Constitution Committee next month.
Tax
Introduced in 1 April 2015 to replace the UK landfill tax (see letsrecycle.com story), SLfT is a tax on the disposal of waste to landfill.
It is charged by weight based on two rates: a standard rate and a lower rate for less-polluting materials.
The revenue expected to be raised by the tax is £124 million for 2019-20, with that forecasted to drop to £66 million by 2024-25.
The government says its forecast includes the change in policy on the landfilling of biodegradable municipal waste and the degree to which local authorities and commercial operators are expected to make progress towards the new deadline for the implementation of the landfill ban.
Ban
The Scottish government had hoped to ban biodegradable municipal waste to landfill by 2021.
However, it announced in September 2019 the ban was to be pushed back to 2025 (see letsrecycle.com story).
This move came amid concerns from local authorities and waste management companies that the country was ill-prepared to meet the 2021 deadline.
Whilst this transitional period is in place, the Scottish government says it remains committed to ending the practice of sending biodegradable municipal waste to landfill in order to contribute to climate change targets and ensure Scotland’s waste is managed in a sustainable way.
Conference
Hear an update from Scotland at the LARAC Scotland Conference, to be held on 29 April. More information can be found here.
Subscribe for free