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Vat (Domestic Fuel)

Volume 328: debated on Monday 22 March 1999

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To ask the Chancellor of the Exchequer what estimate he has made of the effect on emission levels of the reduction of VAT on domestic fuel. [76381]

The Government estimate that the reduction in VAT on domestic fuel and power from 8 per cent. to 5 per cent. announced in the July 1997 Budget, will increase annual carbon dioxide emissions in 2010 by 240,000 tonnes of carbon, all other things being equal.