The new Loss on Ignition (LoI) testing regime for landfill tax has been welcomed by the Environmental Services Association (ESA).
From this month, the LoI test will be used to determine whether waste resulting from recycling processes, grit and screenings can be eligible for the lower £2.50/tonne tax rate.
The Treasury has confirmed that for the first 12 months, a LoI threshold of 15% will be in place for the fines to be eligible for the lower rate which will then be reduced to 10%.
“We believe that an objective LOI test will go a long way to prevent the misclassification of waste which has been so costly to responsible operators and to the UK’s economy,” said Sam Corp, Head of Regulation at the ESA.
“The purpose of the LOI regime was to help provide a level playing field for all operators – both those producing and those disposing of waste fines – and to prevent misclassification of waste fines either deliberately or otherwise.
“It is therefore vital that HMRC is both consistent and robust in its enforcement to ensure that the new requirements are properly implemented by all parties.”