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Rebated Gas Oil

Volume 264: debated on Monday 23 October 1995

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To ask the Chancellor of the Exchequer on what basis owners of pleasure craft are eligible for rebated gas oil; what is the cost of this rebate to the Exchequer, and what plans he has to remove this rebate. [38361]

[holding answer 20 October 1995]: A rebated rate of excise duty applies to gas oil used "off road". On this basis, rebated gas oil can be used in pleasure craft as well as in most agriculture vehicles and machinery, in vehicles employed in motorway construction, forestry, mining and quarrying, and in British Rail diesel locomotives.The estimated cost to the Exchequer of the application of the rebate to gas oil used by pleasure craft is between £5 million and £10 million.Decisions on changes in taxation are matters for the Budget statement on 28 November.