Revenue Scotland – the public body set up to administer the country’s new tax powers – has informed operators that they will now need to test waste fines submitted by processors at the lower £2.60 rate of landfill tax.
As part of the tests, which have today been adopted in the rest of the UK, samples are heated in laboratory conditions to determine how much inert-material is present inside – and whether they can meet the lower tax bracket.
However, unlike elsewhere, the Scottish Government has yet to introduce a statutory requirement for the tests – meaning there is no legal obligation for landfill operators north of the border to carry them out.
The belated announcement, which comes the same day landfill tax powers were officially devolved to Scotland, is likely to further confuse landfill operators – after a previous U-turn earlier in the year.
January
In January, the Scottish Government confirmed LOI testing would be introduced in line with the rest of the UK when landfill tax powers were devolved.
But the following month, Revenue Scotland told letsrecycle.com that ministers “had no plans” to introduce the tests until at least April 2016 (see letsrecycle.com story).
Revenue Scotland had at the time promised to clarify its guidance on the issue prior to the transfer of powers on April 1, which it confirmed may make reference to evidence provided by LOI testing.
In a policy note on the Scottish Landfill Tax (Qualifying Material) Order 2015, the organisation has recognised the need for LOI testing on “Groups 1 and 2” of the legislation – which includes rocks, soils and ceramic or concrete materials. However, it adds the Government has yet to consult on whether the testing should be compulsory.
“Overdue”
The revision has been welcomed by the Scottish Environmental Services Association, although it added that clarification on key aspects of the Scottish landfill tax were “somewhat overdue”.
Stephen Freeland, SESA policy advisor, said: “Revenue Scotland’s approach, as set out in the guidance, is largely sensible and in mirroring relevant aspects of the existing HMRC regime should help to reduce opportunities for ‘waste tourism’.
“Conscious of such, Revenue Scotland has used its directional powers to require Loss on Ignition (LOI) for testing of qualifying fines from the outset (1 April), however, LOI will not form a statutory requirement until relevant legislation is introduced.
“Given the very tight timeframes in which the guidance was prepared, SESA will continue to work closely with Revenue Scotland to ensure that operators are aware of relevant responsibilities, and that the transition under the new, devolved landfill tax regime is as smooth as possible.”
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