The chief executive of SITA UK has said he wholeheartedly welcomes clarifications to the rules governing landfill tax which he says have previously been exploited to great commercial effect.
On Friday (May 18), Her Majestys Revenue and Customs (HMRC) announced two changes to its landfill tax rules.Firstly, trommel finesand screenings are now subject to the full 64-a-tonne rate of landfill tax as opposed to 2.50-per-tonne. And, secondly, material used to cover waste in landfill cells before they are capped is also now taxable (see letsrecycle.com story).
Commenting in these changes, SITA UK chief executive David Palmer-Jones said he was pleased as this had previously been a grey area in the law.
He said: “SITA UK wholeheartedly welcomes HMRC clarification to remove the ability to incorrectly charge 2.50 per tonne landfill tax on waste which should have been charged at 64.00 per tonne.
“This has been a grey area, which I know some companies have exploited to great commercial effect, but at the expense of the public purse and completely at odds with the spirit of the landfill tax regime.
Cheap landfilling
Mr Palmer-Jones said that the landfill tax was intended to create a circular economy rather than inadvertently enable cheap landfilling and that the waste and construction industries would both benefit as genuine recycling and recovery would be unaffected.
He said: “The intent of the landfill tax regime is not diluted and the pressure remains on us all to develop innovative ways to truly recover value from waste.
“Contrary to comments I have read, I fail to see how this positive step will lead to any significant increase in the cost of recycling or recovery. In circumstances where there might be an increase, this will be far outweighed by the benefits, both environmentally and financially, to the overall economy.
Level playing field
“Overall this clarification of the rules will mean that all companies, waste management and construction, now compete on a level playing field”
David Palmer-Jones, SITA UK
Mr Palmer-Jones said the change would ensure a level playing field and that more was recycled.
He said: “Overall this clarification of the rules will mean that all companies, waste management and construction, now compete on a level playing field. What is important is that products are genuinely recycled and extracted from the waste stream. The construction industry has made excellent progress in recycling and reusing construction and demolition waste and this is where the focus needs to continue to be.
“I am therefore pleased that HMRC has taken this swift and decisive action and believe this will support additional recovery and landfill diversion, which is good news for everyone.”
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Mr Palmer-Jones comments came after many operators expressed shock yesterday at the landfill tax announcement, with some warning that it could put them hundreds of thousands of pounds out of pocket (see letsrecycle.com story).
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