§ Mr. KeetchTo ask the Chancellor of the Exchequer if he will estimate the impact on tax revenue of giving bio-diesel produced through recycling waste edible oils parity with fossil-based low petroleum gas; and if he will make a statement. [112452]
§ Mr. Timms[holding answer 1 March 2000]: A reduction of duty on bio-diesel produced through recycling waste edible oils, from the current diesel duty rate to the rate applicable to road fuel gas, would cost £35 million in a full year if 90,000,000 litres were to be produced. This is the maximum estimated UK production capacity, and does not take account of any possible imports. There is little information available to support the case for a duty reduction to the same level as road fuel gas.