Excise Duties: Biofuels
Treasury
Written answers and statements, 5 November 2009
David Amess (Southend West, Conservative)
To ask the Chancellor of the Exchequer
(1) what assessment his Department has made of the effect on the UK's biodiesel market of the proposed removal of the 20 pence per litre duty differential on biofuel from April 2010; and if he will make a statement;
(2) whether his Department has carried out an impact assessment of the proposed removal of the 20 pence per litre duty differential on biofuel from April 2010; and if he will make a statement;
(3) whether his Department has conducted an environmental impact assessment of the Government's proposal to remove the 20 pence per litre duty differential on biofuel from April 2010; and if he will make a statement.
Sarah McCarthy-Fry (Parliamentary Secretary, HM Treasury; Portsmouth North, Labour)
The Chancellor sets environment and transport tax rates in the normal Budget process based on the overall fiscal judgment. In making these decisions, he takes all relevant fiscal, economic, social and environmental factors into account. HM Treasury keeps all taxes under review.
It is Government policy that proposals imposing or reducing recurrent administrative costs on businesses or the third sector require publication of an impact assessment. A change in tax rate does not impose or reduce administrative costs and therefore an impact assessment is not usually published.
Table 6.2 of Budget 2008 sets out the environmental impact of Budget measures