The devolved powers will allow Wales to design a system that ‘reflects Welsh priorities and needs’ – and will follow the transfer of landfill tax powers to Scotland later this year.
There are currently 28 landfill sites and 23 landfill operators within Wales, which generated an estimated £50 million in tax revenues in 2013/14 according to Her Majesty’s Revenue & Customs.
The shape and scope of Wales’ Landfill Disposals Tax will be determined by the outcome of this latest consultation – which will be officially announced by Welsh finance and government business minister Jane Hutt at a plenary meeting of the Welsh Assembly this afternoon.
The document is described as ‘wide-ranging’ and covers a number of areas include: tax rates and taxable disposals; compliance and enforcement; administration, and; community wellbeing.
Illegal deposits
Significantly, the Welsh Government is also consulting on the possibility of including illegal deposits of waste within the scope of the new tax.
This means that waste operators who are found to have illegally disposed of their waste will be required to pay landfill tax twice – firstly at the point where they disposed of it illegally, and again when it is deposited at a licensed landfill site.
Ms Hutt, who yesterday visited a landfill site in Rumney, Cardiff, to discuss the Welsh landfill tax, said the proposal would put an end to an ‘unfair advantage’ enjoyed by tax evaders over law-abiding businesses.
She said: “I want to ensure that all those who have waste to dispose of comply with the tax fully and properly. Avoidance and evasion deprive our valued public services. It also gives tax evaders an unfair advantage over those law-abiding businesses and individuals who pay their fair share. This is unacceptable and we will consider all the available tools to deter and take action against those who are seeking to avoid or evade tax.”
‘Consistency’
Ms Hutt added that it was important a new tax for Wales ‘maintained consistency’ with England and Scotland.
She continued: “The existing Landfill Tax has been around for almost 20 years and we are keen to explore ways in which we can modernise the administration of the tax, enabling it to operate more efficiently, minimising the burdens on business. However, we are not looking to introduce changes where they are not warranted and recognise that there may be areas where it is preferable to maintain consistency with England and Scotland.”
Sam Corp, head of regulation at the Environmental Services Association (ESA), who are represented on the newly-created Welsh Government Landfill Disposals Tax Expert Group, welcomed the consultation.
He said: “The Welsh ESA welcomes the consultation on Landfill Disposals Tax. We have had useful preliminary discussions with the Welsh Government and look forward to further detailed engagement to help develop the best tax possible for Wales, including a robust compliance framework to ensure a level playing field for all operators.”
The Landfill Disposals Tax consultation is due to close on May 19 this year.
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