The power to set and raise landfill tax has been devolved to the Welsh Government.
As part of a range of new powers that will see the Welsh Government in control of £3 billion of tax revenue, Wales will be able to use landfill tax revenues as a funding stream to pay back any money it borrows to improve infrastructure projects.
This follows the Silk Commission’s recommendations on devolving tax revenues to Wales that have now been accepted by the UK Government.
Chief Secretary to the Treasury Danny Alexander said: “I am delighted that my work with Jane Hutt, the Welsh Government Finance Minister, and close cooperation between our two governments has delivered this excellent outcome for Wales.
“The package of financial powers we have published today will be a powerful tool, bringing greater financial accountability and transparency to the Welsh Government. This is a good outcome for Wales.”