Revenue Scotland is seeking views from waste processors and landfill operators on existing guidance, after respondents to a previous 2015 consultation argued it needed to be “more prescriptive”.
The scope of the new consultation includes finalising the methodology for loss-on ignition (LOI) tests – which are due to be made mandatory for operators submitting waste at a lower rate of tax north of border from October 2016.
Landfill tax powers were devolved to the Scottish Government in April 2015, but rates have so far remained in line with the rest of the UK – with a standard and lower rate of £84.40 and £2.60 respectively.
However, correspondence between Revenue Scotland and skip hire association the United Resource Operators Consortium (Uroc) in April highlighted that a ‘closer liaison’ was needed to prevent operators from applying the rules differently.
According to Uroc, its Scottish members had been informed by the Government that any waste fines produced from their sites would not qualify for the lower rate of tax if they originate from a ‘mixed waste input’, such as skips.
In response, Revenue Scotland claimed that it was “difficult to see how the type of mixed waste you describe could meet those conditions, unless all of the contributing streams were substantially and demonstrably qualifying materials”.
Fines
In its latest consultation, the organisation has asked operators how ‘easy will it be to be sure’ of the tax due on each load of waste fines disposed of at landfill under its consultation guidelines.
It goes on to describe waste fines as “fractions of material produced by a waste treatment process that involves an element of mechanical treatment”. It adds that fines with a small amount of non-qualifying material can only qualify for the lower rate of tax if subjected to a “satisfactory treatment process” either before mechanical treatment or through further separation of fines after they have been produced.
Clarifying its position, Revenue Scotland notes that fines from ‘mixed waste inputs’ such as skips, will only be accepted at the lower rate of tax if they have been subjected to a satisfactory treatment process.
LOI
On LOI tests, Revenue Scotland has reaffirmed that in order to be charged in the lower tax bracket, waste samples must achieve a loss on ignition of 10% or less. Samples will meanwhile weigh 5g and be conducted for every 1,000 tonnes of waste submitted by a processor to landfill.
A delay in LOI becoming compulsory has stoked fears that operators in England could send their waste to Scottish landfills. The 10% threshold has been in place south of the border since April 2016. However, some have contested the ‘waste tourism’ argument (see letsrecycle.com story).
Revenue Scotland is inviting views on its LOI standards and waste fines definition until 31 July, with a view to incorporate them into final guidance to be published on 15 August.
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