MPA seeks urgent talks on tax hike

HMRC Brief on landfill tax creates uncertainty for recycling and quarry restoration operations

THE HM Revenue & Customs (HMRC) brief number 15/12 on landfill tax issued on 18 May has created uncertainty for many operators involved in the production of recycled aggregates or using inert materials for quarry restoration purposes and, unless it is modified, could threaten the sustainable recycling of land and waste, contrary to the Government’s own objectives, says the Mineral Products Association (MPA).

The Association says that while it recognizes the need for the brief, which clarifies how HMRC will classify certain waste materials in the future, the total lack of prior communication and the unannounced publication of the brief, together with the immediate introduction of its changes and the very significant increases in tax rates that could result, have caused alarm among many operators.

According to the brief, waste fines that were previously covered by the lower £2.50 per tonne landfill tax rate are to be charged at the full £64 per tonne rate with immediate effect, representing an overnight increase of around 2,500%. As a result, there are fears that some aggregate recycling sites might no longer be financially viable and may be forced to close.

The MPA has been in contact with DEFRA and the Environment Agency to seek urgent meetings to resolve a number of apparent unforeseen and unintended consequences arising from the brief that may have come about from misunderstandings about the use of different materials to beneficial effect in the restoration of land.

Discussions with Environmental Services Association (ESA) are also ongoing, to ensure that the accepted positive clarification for waste operations does not create unwanted damage to valuable recycling or quarry restoration activities by default.