Waste Management

23.09.16

Councils hail ‘huge victory’ on waste VAT exemption

Councils will be able to keep their exemption from VAT on commercial waste collections following a High Court ruling.

The High Court rejected the judicial review challenge from a commercial waste company yesterday.

The LGA had previously warned that if the exemption had been lifted, waste collection charges would increase by 20%.

This could harm small businesses and encourage an increase in fly-tipping, so councils would have been under pressure to absorb the charges themselves, at a cost of £77m and at a time when council budgets are already under unprecedented financial pressure.

Cllr Martin Tett, the LGA’s environment spokesperson, said: “This is fantastic news and a huge victory for councils and it will mean savings of many millions to them at a time when many local authorities have experienced substantial budget reductions.”

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