Ministers are to consider the Landfill Tax and the case for an Incinerator Tax in the light of a report from the Cabinet Office’s Performance and Innovation Unit.
This was apparent in a government response which contained an official reply to a report from the Commons Environmental Audit Committee, which said the fiscal treatment of inert waste – at a lower rate – acted as ‘a perverse incentive’ to use landfills rather than re-use the material.
The government saidÿit was already its intention to increase the tax by £1 per tonne a year until 2004 and it has made it clear ‘that it anticipates the rate of the tax will need to be increased significantly in the medium-term’.
Its claimed the taxÿhas already had ‘a significant impact’ and the quantity of inactive waste going to landfill had fallen 57% since its introduction.ÿ