QPA Condemns 25% Increase in Aggregates Levy in Two Years
QPA, the principal trade body for the quarry products sector
has branded the Chancellor's decision to index link the Aggregates
Levy in 2009 as environmentally and economically perverse. Next
year's 5p increase amounts to a remarkable 25% increase in just
two years.
Director General Simon van der Byl commented "the Government
claims that the Aggregates Levy is being increased 'to maintain
its environmental impact', but as it has yet to produce any evidence
of the green benefits of the tax, there is no justification for
the increases. The QPA has been asking Government for environmental
benchmarks with which to monitor the effectiveness of the Levy
since its introduction in 2002. Government has refused to publish
any such benchmarks or to carry out any assessment of the environmental
impact of the Levy, but continues to claim significant environmental
benefits (note 1)."
"These claims are nothing more than greenwash. The ratcheting
up of the Aggregates Levy will generate increasing tax revenues
of £75 million in 2008/9 and £85 million in 2009/10,
compared with 2007/8. These costs will ultimately be paid by construction
clients, including Government, in effect transferring money from
the transport, social housing, schools and hospital budgets back
to the Treasury".
"The irony is that the environmental performance of the
industry has continued to improve in recent years, for example
evidenced by the increasing recognition of the industry's contribution
to creation of wildlife habitats and biodiversity through site
restoration (note 2). Unfortunately the methodology used by Government
to create the Levy in the first place assumed that quarry restoration
generates nil social or environmental benefits. The bizarre consequence
is that as the industry's environmental performance improves,
the level of this perverse environmental taxation increases."
ENDS
If you need any more information, please contact our
Press office or return
to the News homepage
|
