New tax targets illegal waste dumping

It's expected that there will be fewer than 10 landfill sites left in Wales by 2020 Credit: Welsh Govenment

The Welsh Government's latest tax powers will raise less money every year - at least that's the plan, under a proposed new law published today.

It's expected that the new Landfill Disposals Tax will encourage the trend towards recycling waste, instead of burying it. In April 2018 it will replace a UK tax that raised £34 million in Wales in 2015-16 but the new Welsh tax is expected to raise £27 million in 2018-19.

The main difference between the new tax and the existing one is that it will also apply to illegal waste disposal. Sites operating outside the law will be subject to an especially high rate of tax -if they're caught. Other rates will remain in line with UK rates -currently £2.65 a tonne for relatively harmless waste such as soil and stone, £84.40 a tonne for other rubbish.

Unlike the new tax on property sales, which is primarily seen as a source of revenue for the Welsh Government, tax on landfill is being devolved to complement other powers to control and discourage disposing of waste instead of recycling it. That's why the Finance Minister is looking forward to collecting less money from it every year.

There will be very few taxpayers. Only 20 landfill operators are licensed in Wales, running 25 sites. It's expected that the number of sites will fall to fewer than 10 by 2020. Some of the revenue will be spent on community projects in areas affected by landfill. The money will go to schemes that benefit biodiversity, minimise waste or more broadly improve the environment.