HC Deb 23 July 1980 vol 989 cc245-6W
Mr. Churchill

asked the Chancellor of the Exchequer at what rate tax, including petroleum tax and value added tax, is charged on fuel used by the Royal Air Force for the air defence of the United Kingdom; when such taxes were instituted; and on what basis he justifies such taxation.

Mr. Peter Rees

Following are the rates of excise duty and VAT charged on hydrocarbon oil used by the Royal Air Force in the United Kingdom:

pence per litre
Light oils 10.00
Heavy oils for use as road fuel (DERV) 10.00
Heavy oils, including aviation turbine fuel, for use other than as road fuel 0.77
Kerosene other than aviation turbine fuel 0.22
PREVIOUS FINANCIAL YEAR
Area Searches Sets seized Charges so fur brought
Northern Ireland 2 13 Nil
England 21 194 4
Wales Nil Nil Nil
Scotland Nil Nil Nil

Gas oil, fuel oil and kerosene—including aviation turbine fuel—other than derv, are zero rated for value added tax. All other oils are chargeable with value added tax at the standard rate of 15 per cent.

Duty at the normal rates has been payable on oils used by the Royal Air Force in the United Kingdom since the duty on hydrocarbon oils was introduced in 1928. Value added tax has been payable since 1 April 1974 on light oils and derv and since 1 May 1980 on lubricating oils.

It is normal practice for Government Departments, including Ministry of Defence, to pay the full cost of goods and services, including duty and other taxes; and Estimates are calculated accordingly.

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