Landfill tax - increases in the standard rate
The measure
Legislation will be introduced to increase the standard rate of landfill tax ('LFT') from £40 to £48 per tonne.
Who will be affected?
Landfill site operators and those disposing of materials at a licensed landfill site.
When?
The changes are intended to come into effect on 1 April 2010 for any disposal treated as made on or after that date.
Our view
The standard rate of LFT has risen by £8 each year since 2007/8 and is anticipated to continue increasing at this rate until at least 2010/11. HMRC hope that these increases will ultimately discourage the landfilling of waste and clearly the measure is an effective method of raising extra revenue.
