HM Revenue & Customs has launched a consultation on a proposed Loss on Ignition (LOI) test regime, saying it will help operators identify the correct levels of landfill tax for trommel fines.
The Government announced in the Budget this year that an LOI testing regime on fines from waste transfer stations will be rolled out by April 2015, after a consultation on the matter was completed.
The HMRC consultation will run from today until 19 September.
ESA director general Barry Dennis said: “We are pleased that Government has listened to ESA’s calls for a more objective regime for determining the tax liability of waste ‘fines’.
“Misclassification of waste ‘fines’ for landfill tax purposes distorts the market and has significant economic and environmental impacts. As shown in the recent ESAET Report ‘Waste Crime: Tackling Britain’s Dirty Secret’, nearly £160 million per annum is being lost to the public purse, due to waste materials, deliberately or otherwise, being incorrectly described as ‘low rated’ in terms of landfill tax.
“Historically, landfill site operators have had to largely rely on visual checks alone and we hope that the introduction of a Loss on Ignition testing regime will take away the opportunity for tax to be avoided and will also help to ensure more waste is recycled and recovered.”
Click here for details on how to contribute to the HMRC consultation.