Increase to the Scottish Landfill Tax announced in the Scottish Budget

SLfT applies to the disposal of waste to landfill, charged by weight on the basis of two rates: a standard rate; and a lower rate for less polluting materials.

Policy

SLfT rates are intended to provide a financial incentive to support a more circular economy, and the delivery of ambitious targets to reduce waste, increase recycling and cut waste going to landfill.

The SLfT arrangements also encourage landfill site operators to make a financial contribution to community and environmental projects through the Scottish Landfill Communities Fund (SLCF). Landfill operators can voluntarily contribute a capped proportion of their landfill tax liability to the SLCF and claim 90 per cent of the contribution as a tax credit.

Rates

We will introduce legislation to increase from 1 April 2024 the standard rate of SLfT to £103.70 per tonne and the lower rate of SLfT to £3.30 per tonne, maintaining consistency with planned UK Landfill Tax increases. This will provide a stable tax environment, whilst addressing concerns over the potential for waste to be moved from or to Scotland should one part of the UK have a lower tax charge than another.

Landfill operators will remain able to contribute a maximum of 5.6 per cent of their tax liability to the SLCF in 2024-25.