Ideas for discussion regarding landfill tax across EU member states, by A. Kouskouris

After the question you uploaded about harmonized landfill tax within EU member states, I could put the following ideas for discussion:

a) Harmonized landfill tax would provide incentives for waste producers to find solutions for waste recovery, enhance recycling or re-use, and lead to a drop in the amount of waste produced.

b) Against a harmonized minimum tax might argue that national circumstances vary and that a harmonized tax at EU level will be thus not an adequate solution mainly on the basis of costs and competitiveness issues Especially for waste categories for which there is no alternative to landfill (e.g. construction material and mineral waste), and landfill taxes might argue to have no steering effect and could instead lead to fly-tipping. A flat landfill tax would hinder the mix of incentives and flexibility needed at national or local level to divert from landfill. The economic costs of waste landfills and population density differ among the Member States.

For example United Kingdom employs both tradable landfill allowances and a landfill tax. More generally, opponents might warn that introducing new minor taxes should be avoided as it is contrary to deregulation and reducing administrative costs.

A landfill tax might not be the best solution, by Greg Vogt

The question posed by Mr. Andrew Kouskouris returns to the issue of using special taxes to achieve certain policy goals. Some do not support taxes of any kind, while some support special taxes directed for special costs, purposes, or society benefits. Certainly if one significantly increases a special tax on a certain item, say a pair of shoes, less people will buy shoes. If you support total diversion of waste away from landfills, then raise the special tax to the level you require to meet your goal. This may not be the most efficient way to shift society's resources, but you will have accomplished your goal.

The arguments against a harmonized landfill tax might include:
- expensive, time consuming to execute
- there may be no 'fair' number or method to harmonize
- other, better tools might be well suited to accomplish the same 'landfill diversion' goal (e.g., market forces, permits, etc.)
- often times creative tax credits work better than direct taxes
- we do not want passage of taxes on waste disposal/treatment facilities methods to become too popular government authorities.

Best regards,

Greg Vogt
Managing Director
International Solid Waste Association
Vienna, Austria

Do we need a harmonised landfill tax across EU members?

Dear Antonis I write down for your blog the folowintg question I can support and have sent as well to your e-mail: Statistics and reports show that there is not sufficient progress from EU member states to divert waste away from landfill trying to implement landfill directive. Are there any ideas about a harmonised landfill tax with EU member states ? What would be in favour and against on that issue?

Andrew Kouskouris
akousk@epem.gr