HL Deb 01 May 2002 vol 634 cc98-9WA
The Earl of Mar and Kellie

asked Her Majesty's Government:

Further to the Written Answer by Lord McIntosh of Haringey on 22 April (WA 2), what rate of duty should be paid on a biofuel when it is being used exclusively in an off-road or "red diesel" context. [HL3976]

Lord McIntosh of Haringey

Under Directive 92/81/EEC Member States must tax biodiesel used in stationary motors; plant and machinery used in construction, civil and engineering and public works; and vehicles intended for use off the public roadway or which have not been granted authorisation for use mainly on the public highway as a road fuel, as a substitute for gas oil (red diesel).

They are allowed to tax it at a reduced rate above the minimum rate set out in Directive 92/82/EEC (currently €18 per 1,000 litres). The Government have included legislation in the Finance Bill 2002 to provide that biodiesel used as a substitute for red diesel bears duty at the same rate, with effect from Royal Assent.