This was the message from Binn Group – one of Scotland’s largest independent waste businesses – in response to the Government’s consultation on whether it should introduce LOI tests for landfilled waste fines material in line with the rest of the UK.
As a result, the Scottish Government has now officially confirmed landfill operators north of the border will be required to adopt LOI testing from October 2016.
The tests, which provide evidence on whether waste fines going to landfill are inert or should be taxed at the standard rate of £82.60 per tonne, have been mandatory in England and Wales since April 2015.
In order to qualify for the lower £2.60 rate of tax, waste processors in England and Wales will be required to achieve an LOI result of 10% from April 1 – after a 12-month ‘grace period’ of 15%.
Revenue Scotland, which has yet to enforce the tests, previously issued guidance recommending that landfill operators take action – but gave no statutory incentive to do so (see letsrecycle.com story).
According to Binn Group, the delay means that many waste businesses in Scotland are “not well advanced with seeking alternative solutions for dealing with fines material” or have a clear understanding of whether their current activities leave them exposed to the standard tax charge.
It added that an extended transitional period of six months to a year should be implemented to allow companies to build a picture of their own compliance.
Suez
In its response, Suez meanwhile dubbed LOI tests the most practical and cost effective regime and has called on the Scottish Government to bring its own landfill tax regime in line with the UK to prevent the potential for waste tourism across the border – “albeit with refinements”.
Landfill operators in Scotland will now be expected to adopt the 10% regime from October following the Government’s latest consultation.
And, the process will see waste samples heated to a temperature of 440 °C for a minimum of five hours in order to keep the methodology consistent with guidelines adopted by Her Majesty’s Revenue & Customs (HMRC).
“Following the results of the consultation Scottish Ministers intend to lay draft legislation in the Scottish Parliament in early 2016.”
Scottish Government
Ministers
The Government notes: “Following the results of the consultation Scottish Ministers intend to lay draft legislation in the Scottish Parliament in early 2016 to put in place a statutory testing regime for waste fines. The effective date for changes coming in to force will be 1 October 2016 to allow time for landfill operators and the waste industry to prepare.”
Among the respondents there was an equal split between those who believed the LOI threshold should be set at either 15% or 10% – a question which is also continuing to dominate debate among operators in England and Wales.
Last week, skip hire association URoc called for a delay to issuing the lower threshold – putting it at odds with ESA which has previously called the 10% upper limit “very generous” (see letsrecycle.com story).
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