NAO: Landfill tax increase to 700% set off fly tipping spike: A 700% rise in the landfill tax in the middle of 1998 & 2014 has spiked additional illegal disposal of waste.
A current report by the National Audit Office (NAO) says that even though the change in the levy by HM Treasury brought about a 65% fall in total waste to landfill throughout the period, it generated a rise in fly-tipping.
It additionally unveiled the misclassification of waste at authorised landfill locations & waste dumped at unauthorised sites lowered Landfill Tax revenue by about £275 million per year.
The spending watchdog has discovered that HMRC only has limited intelligence into the environmental affect of taxes.
Gareth Davies, Head of the NAO, stated: “Taxes are one of the tools available to the government in pursuing its ambitious environmental goals. While there is some evidence of the positive impact that taxes can have on the environment, too little is known about their effect.
“HMRC and HM Treasury should work closely with other departments to ensure that existing and future tax measures are compatible with the wider environmental strategies being developed across government. HM Treasury’s review of how the transition to net zero will be funded is an important first step in this process.”
NAO: Landfill tax increase to 700% set off fly tipping spike
