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Trade group will attack new quarry tax in court

14th February 2002
Page 8
Page 8, 14th February 2002 — Trade group will attack new quarry tax in court
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Keywords : Finance, Public Finance, Tax

• A new quarry tax which will threaten the livelihoods of Britain's rural tipper operators could be deemed illegal if a trade association has its way.

The controversial tax, which will be applied at the rate of £1.60/tonne, is due to come into force in April. It applies to primary aggregates such as sand, gravel and crushed rock and is designed to encourage the use of recycled materials.

In a last-ditch attempt to get the tax stopped, the British Aggregates Association (BAA) is taking the fight to the High Court. The BAA has brought in leading litigation firm Herbert Smith and top QC Gerald Barling, who specialises in EC competition law.

They will argue that the levy offers illegal state aid to exempt products such as clay and slate which compete with aggregates, and as such it violates the European Convention on Human Rights.

Industry insiders fear that the tax will drive up the price of aggregates leading to a drop in sales volumes and an increase in imports. They warn of inevitable quarry closures. BAA director Robert Durward says: "If this levy is not stopped it will cause irreparable damage to our rural economy."

However, the Quarry Products Association (QPA) fears the legal action could backfire. QPA economist Jerry McLaughlin warns: "I can't see the government walking away from this tax. In fact, the danger is that they might just get rid of the exemptions and make it more wide-ranging."

Alfred Sammans, who runs six trucks on quarry work in Grindleford, Derbyshire, attacks the proposals: "I think there will be a bit of a quiet time come April. It just looks like another way of creating money for the government and it's a rotten way of doing it for the hauliers involved."

• For a full analysis of the situation see our feature in next week's CM.


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