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The Finance Act 1996 turned a commitment to a Landfill Tax into UK law. The tax creates a disincentive to landfill by charging for each tonne of waste disposed of at landfill.

The rate of Landfill Tax for active waste is £32 per tonne and is set to rise by £8 per tonne per year until at least 2010/11.

Landfill tax for inert waste is currently £2.50 per tonne.

The Landfill Tax Credit Scheme (LTCS) means that much of the revenue generated from the tax goes to support waste reduction and recycling schemes.

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