Landfill Tax Regulations 1996

The practice of landfilling is frowned upon for a number of reasons:

Waste is essentially raw materials that are being thrown away. There are therefore environmental and economic impacts associated with the production and transport of the raw material to the user, followed by processing, disposal and landfilling.
Landfill gas arises from biodegradable materials. This is composed of 65% methane and 35% carbon dioxide. Both are greenhouse gases and methane is an asphyxiant and can be explosive in certain concentrations.
Leachate is a noxious liquid produced by landfill sites. It is generated by water percolating through the bulk of the landfill and picking up contaminants. It also has an extremely high demand for oxygen. If such liquid escapes into the surrounding environment it can cause much damage.

In order to encourage a movement away from the use of landfill, October 1996 saw the introduction of the landfill tax at £7 per tonne for active waste and £2 per tonne for inactive waste. The active rate rose to £18 per tonne in April 2005 and will increase by £3 per year thereafter.

“Active” is defined as waste which decays (and therefore does gives off methane) or has the potential to pollute groundwater or contaminate land. The vast majority of waste from the sector will be classified as active.

The aim of the tax is to discourage the use of landfill which has traditionally been popular because it represents a low cost waste management option. By increasing the cost of such disposal, the Government wants to encourage a switch away from the “chuck it in a skip” mentality. Increased landfill prices should encourage the use of waste management options nearer the top of the waste hierarchy, e.g. minimisation, reuse and recycling.