Landfill tax fiasco far from resolved

Concerns continue to mount over controversial landfill tax changes despite the Government hurriedly re-issuing guidance last week in a bid to reassure the industry.

A letter from the Treasury, sent to campaigners last Friday (June 1), stated that revised guidance from Her Majesty’s Revenue & Customs (HMRC) would result in waste transfer stations and landfill sites “reversing their fee increases” for certain materials.

Within the new guidance – which the Government hotly denies is a U-turn – it states that residual materials processed at waste transfer stations such as fines from trommels and screens would be taxed at the lower rate if they can be shown to be genuinely inert. Those that can’t will be subject to the standard levy.

While many skip firms are said to be delighted at the clarification, some waste experts are warning that the term ‘inert’ is a grey area and open to interpretation. Industry representatives are due to meet government officials later today to attempt to resolve the issue.

Last week skip hire operators threatened to bring London to a halt over the Jubilee weekend celebrations if no action was taken to reverse the landfill tax changes.

Maxine Perella

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