New Tests Determine Rate of Landfill Tax Causing Issues for Operators : Report Aims to Promote Positive Change for Loss on Ignition Tests for Landfill Fines

An industry study by Leicester, UK based waste and recycling firm Impact Air Systems, has found that that 80% of waste operators have been hit hard with increased tax bills since the loss on ignition (LOI) regulations were introduced.

The company explained that in 2015 the LOI testing regulation came into force through the Landfill Tax (Qualifying Fines) Order. With the transition period for the 15% threshold over, Impact Air Systems said that it undertook research to find out how the industry is managing the changes.

Under the new rules waste operators are required to have samples of their waste tested to ensure they are paying the correct amount of Landfill Tax. However, according to Impact Air Systems 30% of businesses have not yet had their waste ‘fines’ laboratory tested.

The Survey Say…

The company said that the decision to conduct the research was based on high levels of demand from waste managers interested in recovering addition commodities from the fines in their waste streams, as well as from anecdotal evidence about the pressures the new regulations have created.

The study was based on a survey of 51 waste managers from a range of industries across the UK from September to November 2016.

The research was said to have shown that the majority (80%) of the organisations affected by the changes have paid up to an additional 70% in Landfill Tax since the changes came into force last year.

The study showed that the new tax threshold has changed the way waste operators choose to recycle to save money, as 65% stated they are finding alternative waste management solutions.

This was said to include investing in new equipment for further processing such as density separation, additional screening, detailed reviews of waste streams, extracting inerts and strict regulations around the type of waste entering the facility.

The survey also found that 62% of waste managers would like clearer information about the new tax threshold for waste fines, to enable them to pay the right amount and look at new ways to reduce their tax liability.

Nick Ball, managing director of Impact Air Systems commented:

“Every week we meet waste managers in our testing facility that are conducting research and development for ways to further separate their waste to ensure any remaining value has been extracted from the waste stream to increase revenue and minimise disposal costs. This then results in the reduction of their LOI, so they become liable for the lower tax amount.

“It became apparent that there was an industry issue, with so many waste managers admitting to the high Landfill Tax bills they now receive and the pressure they are under to reduce this. It is important for us to work with waste companies to assist them with their responsibilities, both environmental and commercial.”

Impact Air Systems said that it plans to share their findings with the government officials responsible for providing guidance for LOI testing and regulations to promote positive change.

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