§ Mr. Skeetasked the Chancellor of the Exchequer for how many years the tax on fuel oil has approximated £8 per tonne; and by how much the value of the tax has been eroded by inflation since the higher rate was introduced.
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§ Mr. Bruce-GardyneThe present rate of excise duty on fuel oil—0.77 pence per litre—has applied for almost three years since 26 March 1980, since when its real value has fallen by about 20 per cent. Fuel oil is zero-rated for VAT.
§ Mr. Skeetasked the Chancellor of the Exchequer what would be the cost to the Treasury of exempting the electricity supply industry from paying tax on fuel oil.
§ Mr. Bruce-GardyneIt is estimated the cost would be about £50 million a year.