§ Barbara FollettTo ask the Chancellor of the Exchequer what changes he proposes to make to the aggregates levy legislation. [43215]
§ Mr. BoatengThe primary legislation for the aggregates levy was included in the Finance Act 2001. Since the Act received Royal Assent, Customs and Excise have continued to consult the aggregates industry on matters of details, with a view to finalising the secondary legislation, which will be laid shortly.
During those discussions a number of technical issues have been raised, and it is the Government's intention to make a number of small changes in this year's Finance Bill that will facilitate the smooth functioning of the levy. These are:
To amend the definition of aggregate to include rock that has not been subject to an industrial crushing processTo clarify the definition of dimension stoneTo extend the exemption for processing waste arising from the extraction of coal to the processing waste of all industrial mineralsTo clarify that for all mineral extraction, any aggregate contained in the overburden is taxable968WTo extend the exemption for aggregate won from forest or farm land and used in adjacent land, to its use in land occupied with that forest or farmTo extend the exemption for drill cuttings to include onshore drill cuttingsTo extend the penalty regime to customers of aggregate suppliers in circumstances where the customers give false information concerning the use of aggregateTo introduce a number of minor technical amendments which clarify policy intention, close a potential loophole or bring the legislation into line with other taxes. These were detailed in Customs and Excise Business Brief No. 17/2001 issued on 28 November 2001.The Government also announced in the pre-Budget report that it was minded to phase in the levy for aggregates used in processed products in Northern Ireland. Enabling legislation for this change will also be brought forward in this year's Finance Bill.