Waste Tax 1987-1996

8. International aspects

8.1 Introduction
8.2 Waste taxes in other EU countries
8.3 Waste management fees in the EU
8.4 Development in waste amounts

8.1 Introduction

The purpose of this short section is to provide an outline of other EU countries that have introduced taxes on waste similar to Denmark, and to evaluate the rate of the Danish waste tax in comparison to total disposal costs in a number of EU countries. Furthermore, developments in waste amounts in some of these countries is evaluated.

8.2 Waste taxes in other EU countries

In recent years, several countries have introduced environmental taxes on waste. Both the rate of these taxes and their design vary considerably, as described below.

France

In France, a waste tax was introduced in 1992. It is levied at plants receiving collected waste (OECD, 1994: 87). The purpose of the tax is to support the phasing-out of conventional landfills. The tax is FRF 40 (DKK 45) per tonne waste. The tax yield is collected in a fund and earmarked for environmental purposes. The funds are used among other things to develop new technology and to invest in intermunicipal waste treatment plants.

The Netherlands

In the Netherlands, a waste tax was introduced taking effect from 1995 (Henderson, 1996). The purpose of the tax is to raise costs of landfilling compared to incineration, and as a consequence, the tax is only levied on waste going to landfill. Most types of waste are subject to tax, also industrial and commercial waste. As in Denmark, plants are charged and costs integrated in the total waste bill. The tax amounts to NLG 29.20 (approx. DKK 98) per tonne of waste. The yield enters as a revenue in the state budget together with other green taxes.

Great Britain

In Great Britain a landfill tax was introduced taking effect from 1996 (only two per cent of waste goes to incineration). The purpose of the tax is to support the overall waste policy, including the promotion of recycling (Riley, 1996). All waste going to landfill is subject to the tax which is levied per tonne of waste. There are two tax rates. A standard rate of GBP 7/tonne (DKK 76) and a lower rate of GBP 2/tonne (DKK 22). The low rate applies to inert waste (i.e. neither physically nor chemically reactive waste with a negligible liberation of material). The tax yield is used partly to lower employer taxes, and partly to establish funds for promotion of recycling. Thereby, a considerable share of the yield is earmarked for environmental purposes.

Norway and Sweden

In Norway and Sweden, proposals have been presented to introduce waste taxes, partly modelled on the Danish tax.

In Norway, the Green Tax Commission recommended in its report from 1996 to introduce a tax on landfilling and incineration. In a consultation statement from May 1997, the Norwegian Miljøvernsdepartement (Ministry of the Environment) has proposed that the tax amounts to NOK 300 (DKK 282) for waste to incineration and landfills with recovery of methane gas etc. For landfills without recovery of methane gas etc. it is proposed that the tax is fixed at NOK 500 (DKK 471) per tonne. Methane from landfills in Norway accounts for around 12 per cent of all greenhouse gases, but as it is not possible to relate the tax directly to the emission of gases, a tax differentiation is proposed. The tax is expected to promote the establishment of gas recovery at all landfills and lead to a 55 per cent reduction in organic waste resulting in a reduction in total Norwegian greenhouse gas emissions of 9 per cent. No refunds will be granted for waste subsequently removed.

In Sweden, a bill on waste taxes on waste going to landfill has been drafted. The bill implies the introduction of a tax of SEK 250 (DKK 223) per tonne of waste delivered to landfills, whereas incineration plants are excluded. The bill has been prepared in a special survey (SOU 1996: 139). The bill is expected to be enacted and take effect in 1998.

Other countries [note 23]

In Germany, taxes on special waste have been introduced at state level in six states. Taxes vary from DEM 100 to DEM 300/tonne (DKK 380 - 1,142). In Belgium, the state of Flanders introduced a general waste tax as early as 1987. The tax is differentiated and varies from BEC 231/tonne (DKK 43) for incineration with energy recovery and up to BEC 963/tonne (DKK 178) for conventional landfilling.

In Austria and Finland, national taxes on landfilling of waste have been introduced. In Austria, the tax varies from ATS 60 to ATS 1,000 per tonne waste (DKK 33 - 550). In Finland, a landfill tax was introduced from 1.9.96. The tax amounts to FIM 90/tonne waste (DKK 115), exempting in most cases soil and construction and demolition waste.

No statistics on prices

In order to be able to evaluate the possible effects of the waste tax, especially on cost burdens in enterprises and competitiveness, it is necessary to evaluate total treatment costs, i.e. the sum of taxes and treatment fees. Just as taxes, the rate of treatment fees varies very much between various countries, but it also varies between regions and municipalities in the different countries. The variation is partly due to different regulations on design and safety measures of plants, and partly to considerable variations in financing concepts, also within the countries. No authoritative statistics on prices are available, and it is very complicated to make comparisons.

Denmark at a level with the Netherlands and Germany

Figure 8.1. shows a comparison of lowest and highest rates for landfilling in 1993. The highest rates are found in Germany, the Netherlands and Italy, the lowest in Great Britain. Denmark was not included in the study, but, also due to the waste tax, it is among the cost-heavy countries, with an interval between lowest and highest rates similar to the level of Germany and the Netherlands. The cheapest rates of landfilling in Denmark are estimated to be at certain coastal landfills, where the fee including waste tax was around DKK 250/tonne in 1993.

Figure 8.1. Comparison between lowest and highest rates for landfilling in a number of EU countries 1993 (Source: Riley, 1996).

Increase in waste amounts

At European level there are large problems in maintaining reliable and comparable waste statistics. Data in figure 8.2. are stated by the European Environment Agency in Copenhagen and are assumed to be the most reliable data available. The figure shows the development in municipal waste amounts.

As figure 8.2 shows, waste amounts are increasing in EU countries.

Figure 8.2. Development in municipal waste amounts (Source: EEA, 1998:347)
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23/ Source of this section: "Avgift på sluttbehandling av avfall", Rapport fra en interdepartemental arbeidsgruppe, Oslo: Miljøverndepartementet, pp. 94-98, 4.6.1997.