Climate Change Levy

Treasury written question – answered on 2nd May 2002.

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Photo of Ms Sue Doughty Ms Sue Doughty Liberal Democrat, Guildford

To ask the Chancellor of the Exchequer what the total cost to the Treasury will be (a) at the outset of its introduction and (b) projected in the next three years of (i) an exemption from the Climate Change Levy of fuel used in dual-use purposes and (ii) extending relief to certain processes to certain processes which compete with those benefiting from the dual-use or non-fuel use exemptions; what steps (A) have and (B) will be taken to introduce such exemptions; and if he will make a statement.

Photo of Mr Paul Boateng Mr Paul Boateng Financial Secretary, HM Treasury, The Financial Secretary to the Treasury

The dual-use exemption is an integral part of the levy's design and is taken account of in published climate change levy forecasts. Customs have been considering which processes the new exemption will apply to and will be consulting industry and other Government Departments shortly for their views on which processes should benefit, with a view to introducing the exemption at the earliest opportunity. The cost of extending the exemption is expected to be negligible, but will be subject to the definition being finalised.

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