Reforming landfill taxation

Summary

The working group examined ways to make the landfill tax system competitively more neutral, explored options in increases in the tax, scaling the tax, taxing waste incineration, abolishing landfill taxes and extending landfill taxes to include private landfill sites. Other needs for reform were also reviewed.

To make the tax competitively more neutral, the options of tax exemption, partial taxation and full taxation of reject waste generated by waste treatment was studied. No unanimous understanding for a best solution exists, as all options have advantages and disadvantages.

Any tax increases should be introduced in stages. The scaling of landfill taxes was not deemed judi-cious. There was no proposal to start taxing waste incineration but it should no longer be subsidized. The working group did not recommend abolishing the landfill tax.

The working group did not endorse the idea of extending the landfill tax. The Waste Tax Act should not be amended with provisions that could be interpreted as State aid requiring Commission approval.

A separate intermediate storage site and site for land and bedrock material as well as a processing area for organic waste and sewage sludge should be excluded from the scope of landfill taxes.

Waste from the owners of landfills situated in joint landfill plants should be tax-exempt whereas tax-exempt landfill capacity for waste generated by others should be restricted.

Tax exemption for cleaning polluted areas should be retained. Tax exemption for de-inked waste, desulfurized waste and fly ash could be relinquished. Waste used in the structures of landfills should be kept tax-exempt and extended to apply to glass waste. Instead, tax exemption for concrete waste limited to grains smaller than 150 mm can be abolished.

In addition, the legal provisions on tax liability should be made clearer and the conversion coefficient schedule on unit weights annexed to the legislation could be revoked.

Language versions

• Jäteverotuksen kehittäminen, 18/2009
  10.04.2009
• Utvecklandet av avfallsbeskattningen
  10.04.2009

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