The Welsh Landfill Disposals Tax (LDT) will “remain consistent” with the national Landfill Tax, according to the Welsh Government, which has published new rates and bands for Wales’ first taxes in almost 800 years.
Finance Secretary, Mark Drakeford, has published what the Welsh Government is calling a “progressive tax regime”. To be introduced on 1 April 2018, the new taxes will replace national stamp duty land tax and landfill tax.
For the first 2 years of LDT, the standard and lower rates will “remain consistent” with those for landfill tax to provide “certainty and stability” for businesses and reduce the risk of waste moving across the Wales-England border.
Wales will become the first country in the UK to introduce a new higher rate of landfill disposals tax to deter people from disposing of waste illegally.
The new unauthorised disposals rate will be set at 150% of the standard rate to ensure unauthorised disposals are more “financially risky” and so a “less attractive option” for those tempted to ignore their environmental obligations and evade tax.
“These new progressive rates and bands for land transaction tax and landfill disposals tax will make a real difference to people’s lives; help change behaviours and deliver improvements to communities across Wales.”
Announcing the rates and bands, Professor Drakeford said: “The devolution of tax powers provides us with the opportunity to reshape and make changes to improve existing taxes to better meet Wales’ needs and priorities. I have always been clear that we will use these powers to help improve fairness and support jobs and economic growth in Wales.
“These new progressive rates and bands for land transaction tax and landfill disposals tax will make a real difference to people’s lives; help change behaviours and deliver improvements to communities across Wales. We are being bold but balanced and leading the way in creating a fair and progressive tax system.”
Under the Wales Act 2014, the Welsh Government has powers to put forward proposals for the development of new taxes in areas of devolved responsibility.
The Finance Secretary announced a shortlist of 4 new tax ideas – based on feedback from the public – which will be developed further this autumn. One proposal will be put to the UK government in 2018 to test the Wales Act powers.
The 4 new ideas which will be explored further are:
- vacant land tax
- disposable plastic tax
- tourism tax
- levy to support social care.
Professor Drakeford added: “The power to propose new taxes is an important one, which we can use to deliver improvements for our communities. The 4 new tax ideas have the potential to do just that.
“Over the coming months, further work will get underway to refine these before we propose one idea to the UK government early next year.”
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