Environmental Taxes in the United Kingdom and Australia

Only available on StudyMode
  • Download(s) : 98
  • Published : March 6, 2013
Open Document
Text Preview
Environmental Taxes in the United Kingdom and Australia

Written by,
Group No: 1031
Sherman Li (610016052)
Meenu Annadurai (610032500)
Chi Yan Wong (590070663)
Ghinna Maharanny (610042745)

BEA 2002
15 February 2013
Word Count: 1994 words

TABLE OF CONTENTS
Table of contents………………………………………………………………...2 1.0 Introduction ………………………………………………………………… 3 2.0 Landfill Tax …………………………………………………………………4 3.1 United Kingdom……………………………………………………..4 3.2 Australia……………………………………………………………..4 3.0 Aggregates Levy……………………………………………………………..6 4.3 United Kingdom……………………………………………………..6 4.4 Australia……………………………………………………………..7 4.0 Climates Change Levy………………………………………………………8 5.5 United Kingdom……………………………………………………..8 5.6 Australia……………………………………………………………..8 5.0 Conclusion………………………………………………………………….10 6.0 Bibliography………………………………………………………………..11 7.0 Appendices…………………………………………………………………15

1.0 Introduction
Environmental issues have intensified for the past ten years, and countering them has become one of the biggest priorities in each government’s agenda. However, as stated in the PwC report “Appetite for Change”, found that businesses in 15 different countries consider that existing environmental taxes and regulations are ineffective, inconsistent and unclear. Another point identified by the report was that the business community is ready for and supportive for environmental changes, but to really start a revolutionary campaign, the government must embrace the role of leader and propel its schemes. In this report, the three main environmental taxes that will be discussed are landfill tax, aggregates levy and climate change levy. The three UK’s respected taxes will first be examined, and then a comparison is drawn with the Australian taxes to provide a study on the differences and similarities of the two countries’ environmental tax policies.

2.0 Landfill Tax
2.1 United Kingdom
The purpose of the tax is to encourage citizens to produce less waste, increase recycling or composting and to use more environmentally friendly methods of waste disposal.

Annual Waste Receipt shows, the total waste tonnage in 2011/12 was 43,772 thousand tonnes. When compared to 2010/11, the total waste tonnage decreased by 4.8%. When compared to 2007/08, the total waste tonnage significantly decreased by 32.8%. This can be explained by continual rise of the standard rate where it was £27 per tonne in 07/08, but is £64 per tonne currently, and expected to be £72 per tonne in 2013/14. The data suggests the increase in landfill tax rates has a great impact on reducing landfill waste.

Although the landfill tax seems to affect the amount of landfill wastes, there are some controversies. The Environment Agency UK pointed out that there were 804 illegal waste sites in England and Wales in 2008/09. Another type of waste crime is fly-tipping, which is mixing up industrial waste with domestic waste. The Environment Agency UK states that there were nearly 1.2 million fly-tipping incidents in England and Wales in 2008, however it has reduced by 55% since 2006. Furthermore, the increasing landfill tax may ruin many businesses especially the small and medium waste firms.

To sum up, although the government data shows that there is a decrease in total waste tonnage to landfill sites, the objectives of setting up the tax may not be achieved as some wastes are still sent to illegal landfill sites.

2.2 Australia
Australia does not have a national landfill tax rate because each state has its own rate, but the objective is similar to UK. In some states, like Western Australia, its levy is quite similar to UK where the tax is charged differently for active waste and inert waste. However in other states, like NSW, South Australia and Victoria, the tax is charged differently for metropolitan and rural area, where metropolitan area has higher rates. Australia’s landfill tax levy increases every year, for example...
tracking img