From 1st April 2018, Landfill Disposals Tax (LDT) will replace Landfill Tax in Wales. Associated funding for local community and environmental projects is also being brought under the devolved administration’s control.
Landfill Disposal Tax (LDT)
Like the Landfill Tax, LDT will be a tax on the disposal of waste to landfill and will be charged by weight. It will be payable by landfill site operators, who will pass on these costs to waste operators through their gate fee. There are three rates of LDT a standard rate, a lower rate and an unauthorised disposals rate (see table).
The standard and lower rates are in line with charges in other parts of the UK. This will provide stability and reassurance to businesses and prevent waste being moved across borders to obtain a cheaper rate (‘waste tourism’).
The unauthorised disposals rate is a new rate introduced by the Welsh Government. It applies to waste that has been dumped illegally and is set at 150% of the standard rate. It aims to create an additional financial deterrent for people seeking to avoid their environmental obligations and dispose of waste illegally.
The Landfill Disposals Tax (Wales) Act 2017 [WWAS8] establishes the legal, administrative and operation framework for the LDT. The tax will be collected and managed by the Welsh Revenue Authority working with Natural Resources Wales on the compliance and enforcement of the tax.
Landfill Disposals Tax Communities Scheme
A landfill Disposals Tax Communities Scheme will be established to replace the existing Landfill Communities Fund. The scheme uses a proportion of the tax to fund community projects and will support biodiversity, waste minimisation and other environmental enhancement projects in areas affected by the disposal of waste to landfill.
Administration of the scheme will move from Entrust, which currently regulates the fund in England, Wales and Northern Ireland, to the Wales Council for Voluntary Action.
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