It focuses on potential changes to the lower rate of LDT to further incentivise recycling, reuse, and the reduction of waste that goes to landfill.
The LDT replaced the Landfill Tax in Wales in April 2018.
Rebecca Evans, cabinet secretary for finance, constitution and cabinet office, who launched the consultation last month, commented: “I encourage all those with an interest to respond to the consultation.
“The consultation will be open for eight weeks, closing on 15 September 2024. After the consultation closes, I will give due consideration to all the responses and issue a report on the consultation.”
Stakeholders can respond to the consultation here.
Independent review of the Landfill Disposals Tax
The independent review of the Landfill Disposals Tax (Wales) Act 2017 was published on 6 July 2023 and provided insight into opportunities to consider to further advance the purpose of the tax.
It found that there are several waste streams where LDT rates are not acting as a deterrent to landfill, and there is evidence that the gap between the lower and standard LDT rates has contributed to the misdescription of waste.
Evans has said that since the publication, officials from Welsh Government, the Welsh Revenue Authority (WRA) and Natural Resources Wales (NRW) have been engaged in work to understand the misdescription of waste and the options to address such misdescription, leading to the development of this consultation.
The work included a project to gain a better understanding of what misdescription is, where it occurs in the waste process, and the key drivers and motivations for people to misdescribe waste.
Evans said she previously wrote to the Finance Committee on 18th October 2023 to advise the committee of this work.
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