Customs advocates further hikes in landfill tax

The Government has signalled further landfill tax increases as a "potentially cost-effective" means of meeting policy targets such as those in the draft EC landfill Directive. Officials are also looking at ways of channelling some of the revenue into recycling projects. But in a major policy retreat HM Customs & Excise is planning to exempt inert wastes used in landfill and quarry restoration, potentially granting tax-free status to hundreds of inert waste landfills. The price may be a diminution of the financial incentive for recycling of demolition and construction waste, and even worse problems for the landfill industry in obtaining engineering materials for active waste landfills.

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