HC Deb 24 February 2003 vol 400 cc204-5W
Mr. Beggs

To ask the Chancellor of the Exchequer (1) how much aggregates tax revenue has been collected in Northern Ireland to date against that which would have been expected; and what is the estimated cost to date of implementing the tax in Northern Ireland; [97014]

(2) what research Customs and Excise have carried out into the amount of illegally imported aggregate from the Republic of Ireland; [97007]

(3) how he proposes to remove the incentive for people (a) to import aggregate from the Republic of Ireland, (b) to open up unauthorised extraction operations and (c) to sell aggregate without paying aggregate tax; [97010]

(4) how many tonnes of imported aggregate have been declared in tax returns to date [97006]

(5) how many (a) detections of evasion of payment of aggregates tax and (b) prosecutions there have been; [97008]

(6) what mechanism is used by Customs and Excise to ensure that companies pay aggregates tax on stone. [97015]

John Healey

The Government has designed the aggregates levy to protect the international competitiveness of aggregates businesses by applying the levy to the commercial exploitation of all virgin aggregate used in the UK and by exempting exports. The Government has also recognised the unique position of the Northern Ireland processed products sector, those producing concrete, mortar and asphalt, by introducing a transitional relief scheme.

This scheme allows the sector more time to adapt to the new market conditions by, for example, making increased use of levy-free alternatives to virgin aggregate.

Customs and Excise assure aggregates levy in the same way that they assure other taxes and duties for which they are responsible. Assurance resources are allocated according to risk. Additionally, in the first year of its operation Customs are undertaking education and assurance visits to all companies registered for the levy. The resources allocated to administering the levy in Northern Ireland take account of issues associated with the land boundary, and this resourcing is subject to regular review.

The levy is due at the point of first commercial exploitation in the UK and not at the point of import. Consequently aggregates can be imported without levy immediately being due and therefore the question of illegal imports does not arise. Where it cannot be demonstrated that commercially exploited aggregate is from a levy-paid source, Customs will use their powers to recover the revenue due and impose penalties, where appropriate.

Similarly, figures for the total weight of aggregate imported into the UK are not available. Aggregates levy returns record the weight of aggregate which is commercially exploited in the UK and do not differentiate between domestically produced and imported aggregate.

Data for revenue collected under the levy are recorded for the UK as a whole and are not available by devolved region; therefore, figures for levy revenue raised in Northern Ireland are not available. Equally, the cost of implementing the levy is estimated for the UK as a whole and not by devolved region.

There have been no prosecutions for evasion of the levy. Customs' approach in the first year of the tax has been to ensure that those who should be registered are registered, and that the correct liability is established and paid.

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