CUSTOMS AND EXCISE
2.Subsection (1) amends sections 42(1)(a) and (2) of the Finance Act 1996 to increase from £10 per tonne to £11 per tonne the tax payable on taxable disposals.
3.Subsection (2) provides for the new rate
to come into force on 1 April 2000.
4.This increase in the standard rate of landfill tax from £10 per tonne to £11 per tonne from 1 April this year, and a programme of annually increasing the standard rate of landfill tax by £1 each year until 2004, when it will reach £15 per tonne, was announced in the Budget last year. The standard rate applies to active waste, that is waste that may degrade, giving off greenhouse gases, or leach into our water resources.
5.The aim is to encourage waste producers and waste management companies to switch away from landfill towards waste minimisation, re-use and recycling.
6.The lower rate of £2 per tonne, that applies to inert waste, is not being changed. This rate has proved to be sufficient to encourage the re-use of that category of waste, so that there is no need to increase the rate.
7.The increase will take effect for disposals made, or treated as made, on or after 1 April 2000. An example of a disposal being treated as made at a date after the date of disposal is where a landfill invoice is issued. The date of issue of that invoice establishes the tax point, unless there has been an election not to use the invoice date.