The level of taxation on waste foundry sand may change under Government proposals being considered to modernise the landfill tax legislation.
Labour Party MP for Stroud David Drew asked a parliamentary question to the Chancellor of the Exchequer (23 June) about what plans he has to change the level of taxation on waste foundry sand and if he will make a statement.
Exchequer Secretary Sarah McCarthy-Fry responded: The disposal of used foundry sand to landfill is currently able to benefit from the lower rate of landfill tax. Used foundry sand, and other wastes, were established as lower rated in 1996 on the basis of the then understanding that they were not active and their landfillling results in a relatively lower level of environmental impact.
At Budget 2009, the Government published a consultation document, Modernising landfill tax legislation which proposes, inter alia, that, in order to strengthen the environmental integrity of the tax, the benefit of the lower rate should be restricted to those wastes which are inert according to the tests provided for at a European level which post-date the establishment of lower rated wastes. The consultation document also seeks views on whether environmental criteria other than inertness should be taken into account when deciding whether a waste might be lower rated. It identified used foundry sand as a waste that would cease to be lower rated if inertness were the only criterion. Comments on the proposals are welcomed by the consultation deadline of 24 July 2009.