(2) pursuant to the answer of 14 October 2008, Official Report, column 1059, on excise duties: fuel oil, what considerations informed the Government's decision to (a) apply to the EU for an extension of the derogation from the Energy Products Directive and (b) apply a rate of 9.29 pence per litre to waste-derived fuel oil, rather than the 15 euros per 1,000 kilograms minimum required under the Energy Products Directive;
(3) what assessment he has made of (a) the likely annual tax revenue from the application of hydrocarbon oil duty to waste-derived fuel and (b) the likely annual administrative costs to the Government of the application of hydrocarbon oil duty to waste-derived fuel.
The Government have considered the effects of the rate of duty on the management of waste oil as a whole.
In applying for a renewal of the derogation on waste oil reused as fuel the Government were concerned about the impact of ending the derogation at a time when the future of the waste oil market was uncertain due to the introduction of the EC waste incineration directive and review of the EC waste framework directive. Also that the benefits to be gained from ending the derogation would be disproportionate to the compliance and administrative costs involved.
The UK is required to impose duty on waste oils reused as fuel and the duty rate to be applied is consistent with the relevant EU directive.
Our assessment of the revenue and administrative cost implications is set out in the “Impact Assessment of the implementation of the Energy Products Directive (EPD) on the use of waste oils reused as fuel”, published on 20 February 2008.