§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer if he will make a statement on the special rate of duty charged on diesel used by agriculture; what is the purpose of this provision; and what is the differential between this rate and that for diesel used by industry.
§ Mr. RyderThe special rate of duty charged on diesel—gas oil—used by agriculture is 1.18p per litre. Its purpose is to raise revenue but at a rate significantly lower than that chargeable on diesel—gas oil—used as road fuel. Both industry and agriculture pay duty at the rebated rate; the full rate of 19.02p per litre is paid only on fuel used in road vehicles.