Aggregates Tax (Hansard, 5 June 2000)

§ Mr. Levitt
To ask the Chancellor of the Exchequer if the proposed aggregates tax will apply to imports of secondary/recycled and similar materials imported into the UK for use in aggregates markets. [124430]

§ Mr. Timms
The aggregates levy will apply to imported aggregate at the point of its first sale or use in the UK, on the same basis as domestically produced aggregate. This means that imported recycled aggregate will not be subject to the levy. Certain types of secondary materials—whether imported or of domestic origin—will also be exempted from the levy.

§ Mr. Levitt
To ask the Chancellor of the Exchequer if the proposed aggregates tax will apply to imports of products manufactured with aggregate minerals. [124447]

§ Mr. Timms
The draft legislation does not apply the levy to imports of processed products, given the difficulties inherent in establishing the taxable aggregate content of such products.

§ Mr. Levitt
To ask the Chancellor of the Exchequer how much it will cost to reduce national insurance contributions by 0.1 per cent., using revenue from the proposed aggregates tax, over each of the first five years of the operation of the tax. [124435]

§ Mr. Timms
Budget 2000 announced that an aggregates levy would be introduced from April 2002 with the revenues recycled to business through a 0.1 percentage point cut in employer National Insurance Contributions and a new Sustainability Fund.
The estimated costs of the reduction in employer National Insurance Contributions is around £0.35 billion in 2002–03, around £0.4 billion in each of the following three years and £0.45 billion in 2006–07.

§ Mr. Levitt
To ask the Chancellor of the Exchequer how much revenue will be raised by the proposed aggregates tax over each of the first five years of its operation. [124434]

§ Mr. Timms
Table A1.13 in the FSBR provides a forecast for aggregates levy revenues in 2002–03.
Future revenues from the Levy will depend on future sales of primary aggregate. This will reflect construction sector demand and the extent to which the levy shifts demand from primary material to recycled and waste materials (which are exempt).

§ Mr. Levitt
To ask the Chancellor of the Exchequer what assessment has been made of the effect of an aggregates tax on the UK's balance of trade in minerals and associated manufactured products. [124431]

§ Mr. Timms
The effect of the levy on the UK's balance of trade in minerals and associated products will74W be minimal. The levy will not apply to industrial minerals. The relief for exports of unprocessed aggregate and taxation of imports will help maintain UK competitiveness. International trade in aggregate products is limited by weight and transport cost.

§ Mr. Levitt
To ask the Chancellor of the Exchequer what assessment he has made of the impact of imported concrete products upon United Kingdom manufacturers of concrete products, following the introduction of the proposed aggregates tax. [1244481]

§ Mr. Timms
Work by Customs economists suggests that the impact of the levy on UK concrete product manufacturers in terms of the treatment of imports and exports of processed aggregate should be small. This is mainly because there are very few imports and exports of concrete products due to the transport costs.