
Climate Change Levy Update
HM Customs and Excise have written to the BPF and ten other Trade Associations asking for evidence on the Levy's impact on international competition.
Leading Energy Consultants, John Hall Associates commented: "This is welcome news since our analysis shows that comparable energy related taxes across Europe fall much more lightly on manufacturing than in the UK.
"In other parts of the EU there is more of a tendency to give the entire category of "manufacturing" or "industry" an exemption."
In Germany, the manufacturing sector benefits from exemptions from taxes on electricity, heating and gas. In addition tax refunds are obtainable by industries whose eco-tax (on the total of electricity, natural gas, heating gas oil and liquefied petroleum gas) exceeds a certain proportion of the employer's contributions to the state pension fund.
In France, Industrial consumers of electricity pay no taxes on electricity. For gas consumption, the duty is nil for users up to 400,000 kWh per month and then 0.11 c/kWh.
Peter Davis, Director General of the BPF says, "Our industry has had to bear the burden of this unfair tax. It has harmed competitiveness, inward investment and profitability. For years we have called for it to be either withdrawn or the criteria extended to give all our energy conscious members a rebate.
"We will use this opportunity provided by HM Customs and Excise to intensify our message."
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