The skip hire trade body has proposed the introduction of a banding system for the landfill tax, as well as pressing for a transitional period for the implementation of a new testing regime.
Uroc has suggested waste should be taxed in bands, which would be set against a Loss on Ignition (LoI) testing regime.
Such regime has been put forward for consultation by HM Revenue and Customs, with a 10% threshold proposed for residual materials from waste transfer stations, known as trommel fines, to be subject to the lower rating of landfill tax (£2.50).
Uroc has said that using the same principle, more rates could be introduced. This would provide an incentive for operators to further sort trommel fines before disposal.
The bands would be:
- 10% LOI = £2.50 - Qualifying Materials Order (Lower Rate Tax)
- 20% LOI = £25.00 - as 20% of the Standard Rate Tax
- 30% LOI = £37.50 - as 30% of the Standard Rate Tax
- 40% LOI = £50.00 - as 40% of the Standard Rate Tax
- 60% LOI = £75.00 - as 60% of the Standard Rate Tax
- 100% LOI = £80.00 - as 100% of the Standard Rate Tax
“Cars and houses are taxed in bands therefore there is no reason why the same could not be introduced for waste,” said Uroc director Gary Ellison. “The less polluting potential a load has the less an operator has to pay for its disposal at landfill –simple.”
The organisation has also urged HMRC to allow for a transitional period before the introduction of the 10% LoI threshold, which is planned for April 2015.
Uroc suggested a window of 12-24 months at a higher rate, such as 15%. It encouraged members to submit evidence to on their trommel fines testing to persuade the Government to consider the proposal.
Ellison said: “We need this data in order to support our position that the sector needs 15% LOI for a transitional period in order to adjust to the new testing regime, modify and potentially improve operational procedures, for example take as much plasterboard out at the front end to try and prevent contamination of materials going through trommels and ultimately to raise capex to invest in new technology and equipment.”