Taxes for landfilling

of waste
KAMIL ISSA
 Why are such taxes important?

 Economic instruments are important when it comes to reducing pollution since

many companies would be motivated to do their best if it is profitable. Taxation is
often done in a way where reducing pollution is cheaper than pay taxes.
 Landfills emit methane, Carbon dioxide, water vapor, etc. Those chemicals
contribute to climate change and create smog.
 Furthermore, leachate can leak from landfills. This is a liquid that contains
ammonia, mercury and other toxins and it can damage ecosystems and
contaminate water sources even far away from the landfill
 This is why landfilling waste needs to be limited not only through regulations but
also through economic tools.
Diagram
Quote
 What is tax on waste (landfill tax)?

 They are taxes an authority collects for disposing waste in a landfill.

 The aim of those taxes is to reduce the amount of waste that ends up in landfills
and promote waste recovery.
 This tax is often levied in units of currency per unit of weight or volume, such as
Euros/ton.
 When it comes to landfill taxing, each EU country has different tax rates. For
example in 2021, in Lithuania the tax rate was 5 Euros/ton and in Belgium it was
100 Euros/ton.
 According to the EU Landfill Directive, restrictions will be placed on landfilling
all waste that is suitable for recycling or other material or energy recovery from
2030. Also, share of landfilled municipal waste will be limited to 10% by 2035.
 Example: UK Landfill Tax

 Taxes are paid on top of normal landfill fees if a business gets rid of its waste
using landfills.
 Landfill tax is charged also if a company gets rid of its wastes in sites not
authorized for landfill. This can also lead to fines and a company can be taken to
court.
 Landfill operators must get a permit to operate/own a landfill. In addition, they
must register for landfill tax within 30 days of setting up a landfill. If this is not
done, a fine can be imposed.
 The tax is charged by weight and there are 2 rates. A lower rate is paid on inactive
waste (3.15 pounds/ton) such as rock and soil.
 The standard rate for other types of waste is 98.60 pounds/ton
 Example: UK landfill tax

 If a landfill accepts waste fines (final output from recycling process where materials
are reduced to very fine soil or sand consistency), a LOI (loss of ignition) test has to
be carried out.
 This test shows the level of contaminants in the fines. If the LOI is less than 10%,
the rate charged will be similar to that of inactive waste.
 If LOI is more than 10%, the standard rate is charged.
 When it come to mixed loads, a standard rate is normally charged with exceptions
including sub-soil with small quantities of grass, subsoil and stone from street works
containing tarmac, mineral dust in polythene bags and bricks, stone and concrete
with small amounts of wood and plaster.
 Basically, the exceptions apply when there is an insignificant amount of standard
material in lower rate load.
 Example: UK Landfill Tax

 Exceptions: dredgings (material removed from water), mining and quarrying

material, pet cemeteries, filling of quarries, and waste from visiting NATO forces.
 Already paid landfill tax can be reclaimed If a customer is unable to pay due to
debts, accepted material is moved to another landfill, or landfilled material is
removed for recycling, incineration or re-use
Has it worked?
 In closing

 This work could be used for purposes such as research, teaching and studying by
students, professors, researchers, etc. Furthermore, it can be used to raise
awareness about climate change and the need to fight it more effectively through
economic initiatives like landfill taxes
 People can use this work to understand the meaning of landfill tax and an example
of how it is implemented by the UK. This information may be useful for future
entrepreneurs and landfill owners.
 Looking at this work, one can expect to understand why landfill taxes are
important, what is landfill taxing(key ideas), how the UK is living up to its
responsibilities and whether there have been results throughout the past years.
 sources

 The Hidden Damage of Landfills | Environmental Center | University of Colorado

Boulder
 Environmental_Policy_Legal_and_Economic_Instruments.pdf (rtu.lv)
 Tax on Waste (Landfill Tax) | Department of Economic and Social Affairs (un.org)
 Landfill waste (europa.eu)
 CEWEP - The Confederation of European Waste-to-Energy Plants
 https://wrtltd.co.uk/materials-handled/waste-fines/#:~:text=Fines%20are%20gene
rally%20the%20final,fine%2C%20soil%20or%20sand%20consistency
.
 Environmental taxes, reliefs and schemes for businesses: Landfill Tax - GOV.UK
(www.gov.uk)