Climate Change Levy (Hansard, 4 March 2002)

§ Mr. Lidington
To ask the Chancellor of the Exchequer (1) in how many cases(a) Customs and Excise and (b) a bailiff has distrained possessions for failure to pay the climate change levy; what was the value of goods distrained; and if he will make a statement; [38576]
(2) in how many cases Customs and Excise has commenced criminal proceedings for fraud involving the climate change levy; [38573]
(3) how many penalties have been imposed to date in respect of the climate change levy for (a) failure to produce information and records, (b) failure to preserve 7W records, (c) ceasing to carry out taxable supplies and (d) failure to render returns and otherwise comply with the regulations; [38584]
(4) how many registration penalties in respect of the climate change levy have been imposed; [38583]
(5) how many non-resident payers of the climate change levy have received a penalty for failure to submit a request to appoint a tax representative; [38577]
(6) in how many cases Customs and Excise has imposed a five per cent. penalty for (a) under declaration and (b) over claiming credit in respect of the climate change levy; [38575]
(7) in how many cases Customs and Excise has imposed penalties for evasion of the climate change levy. [38574]

§ Dawn Primarolo
No penalties have been imposed, possessions distrained or criminal proceedings commenced for failure to comply with the legal requirements governing climate change levy. This reflects our commitment to improve compliance through education rather than by penalising with enforcement action during the introduction of the levy.

§ Mr. Lidington
To ask the Chancellor of the Exchequer (1) what assessment he has made of the impact of the climate change levy on the British plastics industry; [38589]
(2) what review he has carried out of the compliance costs to British industry of the climate change levy in the light of experience since 1 April 2001; [38617]
(3) what steps he has taken to consult (a) business organisations and (b) individual companies about the impact of the climate change levy since its introduction. [38588]

§ Dawn Primarolo
As part of the normal process of contact with business, the Chancellor and the Treasury ministerial team have met with a variety of business organisations and individual companies since 1 April last year, and have heard a variety of representations on tax, including climate change levy, and on other matters.
The levy package is expected to be broadly revenue-neutral for both industry and the service sector as a whole. However, the effect on any individual company or sector will depend on a number of factors, including their level of energy efficiency, use of renewables and CHP, and the extent to which they make investments which qualify for enhanced capital allowances.
The levy was developed in close consultation with business, and many of the proposals put forward during that consultation are reflected in the final design.

§ Mr. Lidington
To ask the Chancellor of the Exchequer (1) what representations he has made to the European Commission; and what evidence he has submitted to their investigation into the climate change levy dual fuel use exemption; [38610]
(2) if he will make a statement in the (a) scope, (b) progress and (c) expected timetable of the Commission's investigation with the climate change levy double fuel use exemption. [38609]
8W

§ Dawn Primarolo
The UK has presented a strong case backed by robust evidence to the European Commission in support of the climate change levy dual-use exemption. We continue to press the Commission strongly for an early and favourable decision in the matter.

§ Mr. Lidington
To ask the Chancellor of the Exchequer if he plans to extend liability for the climate change levy to(a) voluntary aided schools, (b) foundation schools and (c) city technology colleges. [38585]

§ Dawn Primarolo
Eligibility for exemption from the climate change levy (for fuel for domestic or non-business use by charities) mirrors eligibility for the reduced rate of VAT on fuel and power. Exemption from the levy for voluntary aided schools, foundation schools and city technology colleges therefore depends on their having charitable status. There are no plans to change this.

§ Mr. Lidington
To ask the Chancellor of the Exchequer if he will make a statement setting out the Government's intentions concerning the relationship between enhanced capital allowances available for energy-saving technologies under the climate change levy and the enhanced capital allowances for tackling climate change and improving air quality which are proposed under the Green Technology Challenge. [38562]

§ Mr. Boateng
As part of the climate change levy package, the Government introduced a scheme of enhanced capital allowances (ECAs) for investments in qualifying energy-saving technologies. The Green Technology Challenge consultation revealed strong support for offering ECAs on a wider range of energy-saving technologies. As stated in PBR 2001 the Government propose to introduce further ECAs in this area and these will be incorporated into the existing ECA scheme.

§ Mr. Lidington
To ask the Chancellor of the Exchequer (1) what assessment he has made of the impact on the British lime industry of his decision to withdraw the exemption from the climate change levy for fuel used in kilns; [38606]
(2) what the reasons were for the Government's decision to withdraw the exemption from the climate change levy for fuel used in lime kilns; [38607]
(3) what assessment he has made of the impact of the climate change levy on the competitiveness of the British lime industry. [38608]

§ Dawn Primarolo
Energy used in lime kilns is currently treated as being exempt from the levy. This concession has been agreed to last for a period of four years, and reflects a misunderstanding before the start of the tax that energy was being used for non-fuel purposes. When tax becomes chargeable, the fuel used in lime kilns will be eligible for 80 per cent. levy discounts.
The climate change levy only became operational in April 2001, so it is too early to assess its impact properly.

§ Mr. Lidington
To ask the Chancellor of the Exchequer how many applications for registration for the climate change levy have been received by Customs and Excise. [38581]

§ Dawn Primarolo
269 climate change levy registration requests have been received by HM Customs and Excise.