Assembly to debate the general principles of the Landfill Disposals Tax (Wales) Bill

17 March 2017

Article by Helen Jones, National Assembly for Wales Research Service

View this post in Welsh | Darllenwch yr erthygl yma yn Gymraeg

Image from Flickr by Adam Levine. Licensed under Creative Commons.

The Landfill Disposals Tax (Wales) Bill was laid before the Assembly on 28 November 2016, and introduced in plenary by the Cabinet Secretary for Finance and Local Government on 29 November 2016. The Assembly will debate the general principles of the Bill on 21 March 2017.

The Landfill Disposals Tax (Wales) Bill (LDT) is concerned with establishing the legal, administrative and operational framework to replace Landfill Tax (LfT) in Wales in April 2018. Landfill Tax is currently a UK tax on the disposal of material as waste by way of landfill at landfill sites which are permitted under environmental legislation. The current tax was introduced in 1996 as a key environmental behaviour change driver in encouraging the diversion of waste from landfill, greater recycling, reuse and recovery of waste. Since the tax was introduced it has contributed to a significant reduction in the proportion of waste sent to landfill, and an increase in recycling.

This Bill is the third piece of legislation related to the devolution of tax powers in the Wales Act 2014. The Bill was preceded by the Tax Collection and Management (Wales) Act 2016 which established the legal framework necessary for the future collection and management of devolved taxes in Wales and the Land Transaction Tax and Anti avoidance of Devolved Taxes (Wales) Bill, which will replace Stamp Duty Land Tax from April 2018.

Further information on the background to the Bill, an overview of its parts, a summary of financial implications, and a Welsh glossary are provided in the Research Service’s Bill Summary (PDF, 844KB).

The Finance Committee reported (PDF, 1MB) on its Stage One consideration of the general principles of the Landfill Disposals Tax (Wales) Bill on 10 March 2017.

The Finance Committee’s report sets out a number of recommendations aimed at strengthening the legislation. For example, the Committee would like to see the proposed rates of taxation, a list of qualifying materials and provisions for bad debt relief, included on the face of the Bill.

Whilst the Welsh Government intends to bring forward secondary legislation in relation to some of these provisions, the Committee remains concerned that secondary legislation is not subject to the same amount of scrutiny as a Bill.

The Committee also believes that businesses need certainty when it comes to the application of new tax legislation, and that including such detail in the law itself would help to address concerns.

The Committee heard considerable evidence in relation to the importance of the Landfill Disposals Tax Communities Scheme. The Committee recommend that a Communities Scheme is included on the face of the Bill to show commitment to the scheme going forward, but accept that some of the detail could be specified in regulations.

The Constitutional and Legislative Affairs Committee considered the appropriateness of the provisions in the Bill about powers to make subordinate legislation. Its report (PDF, 2MB) was also published on 10 March 2017.

Subject to the Assembly agreeing the general principles of the Landfill Disposals Tax (Wales) Bill, the Bill will proceed to Stage Two (detailed Committee consideration of the Bill and any proposed amendments). Stage Two proceedings are expected to be completed by 26 May 2017.

A summary of the Landfill Disposals Tax (Wales) Bill

05 December 2016

Article by Sean Evans, National Assembly for Wales Research Service

Darllenwch yr erthygl yma yn Gymraeg | View this post in Welsh

landfill

Image from Flickr by Adam Levine. Licensed under Creative Commons.

The Landfill Disposals Tax (Wales) Bill and supporting Explanatory Memorandum (PDF, 935KB) were laid before the National Assembly for Wales on 28 November 2016. The Bill was accompanied by a written statement when laid and introduced in Plenary by the Cabinet Secretary for Finance and Local Government, Mark Drakeford on 29 November 2016:

This Bill will establish a new tax on disposals of waste to landfill, which will replace the existing landfill tax, which is levied on an England-and-Wales basis, from April 2018. The tax aims to ensure the revenue from landfill tax will continue to be collected for investment in public services in Wales. But this is not simply about tax collection, because this Bill is aligned with our waste policy. The landfill disposals tax will play an important role in helping us achieve our goal of a zero-waste Wales. It will continue to ensure the environmental cost of landfilling waste is identified and visible and, in doing so, will encourage greater prevention, reuse, recycling and recovery of waste.

The Bill is the third in a series of bills related to the devolution of the tax powers in the Wales Act 2014. The Bill was preceded by the Tax Collection and Management (Wales) Act 2016 which established the legal framework necessary for the future collection and management of devolved taxes in Wales and the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill, which will replace Stamp Duty Land Tax from April 2018.

Further information on the background to the Bill, an overview of its parts, a summary of costs and impacts and a Welsh glossary can be found in the Research Service Bill Summary. (PDF, 884KB)