Mineral Products Association: Red diesel could cost our industry £100 million for no environmental benefit
MPA has written to the Chancellor, stressing that removing the rebate will not change fuel choice or reduce environmental impacts until there is a suitable alternative.
MPA notes with alarm reports that the forthcoming Budget will remove the current lower rate of tax on diesel used in the Mineral Products sector among others. There are currently no alternative fuels available for our industry for many uses, which delivers the essential minerals for construction and many other sectors. Equipment such as diggers and tipper trucks need diesel.
MPA has written to the Chancellor, stressing that removing the rebate will not change fuel choice or reduce environmental impacts until there is a suitable alternative. Nothing has changed since the last time this change was floated in 2018. In the letter, Nigel Jackson, Chief Executive, writes:
“The rebate is worth over £100 million pa to our industry and there is currently no alternatively fuelled plant available. Higher taxation of red diesel would have minimal impact on industry’s use of diesel or emissions, it would simply be an additional cost imposed on our industry and customers.”
It is worth noting those customers include builders of new housing and infrastructure – key priorities in the Conservative manifesto.
Nigel Jackson, MPA Chief Executive said: “We have long called for fair and efficient taxes. We are not seeking special treatment but rather not to be singled out for environmental taxes that have no demonstrable environmental benefit.”
The Mineral Products sector is also awaiting the review of the Aggregates Levy in the Budget, for which our members already pay around £400 million.
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