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Landfill taxes generate £1.1bn in 2014

Environmental taxes, including landfill tax, raised £44.6bn in 2014, accounting for 7.5% of Government revenue, according to the Office for National Statistics (ONS).

The European Statistical Office (Eurostat) defines environmental taxes as those which tax a physical unit (such as a litre of petrol or a passenger flight) that has a proven negative impact on the environment.

The taxes falling under the environmental bracket cover energy, transport, pollution and resources.

Of the taxes levied on pollution and resources, landfill tax made the largest contribution at £1.1bn, three-quarters of all income from the sector.

Across the economy, taxes on energy contributed nearly three-quarters of all environmental tax revenue (see chart).

Energy taxes are on production and products (such as coal, oil products, natural gas and electricity) used for transport or stationary purposes. More than 60% of this revenue was generated from hydrocarbon oil duties.

Environmental tax revenue, by tax type, 2014

Environmental tax revenue, by tax type, 2014

Transport made up the majority of the remainder, with pollution and resource accounting for 3.4%.

In a report from the ONS, the taxes were said to promote behaviour that will reduce damage to the environment while generating revenue that could promote environmental protection.

In 2012, an average household paid £765 in environmental taxes amounting to £20.4bn UK-wide, which represented 49% of the total.

The remainder is comprised of payments from non-residents and a small share of revenue which could not be allocated to a specific industry.

In 2012, environmental tax revenue as a percentage of total taxes and social contributions made a larger proportion in the UK compared with the average of the 28 EU member states (see table, top).

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