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No delay on aggregates 'stealth tax'
Page 10
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• The government is pressing ahead with its aggregates levy on 1 April, even though the legal basis of the tax has yet to be determined in the High Court.
The British Aggregates Association (BAA) condemns the government's "breathtaking arrogance" in introducing the levy when so much confusion still surrounds it. The High Court has ruled that the tax must be justified by the government in a hearing beginning this week.
"We believe the tax Is Illegal under EC competition law," says BAA director Robert Durward. The government has already announced changes to the operation of the levy, including a partial exemption for Northern Ireland, but cannot now legislate for these before the Budget on 17 April. "The whole situation is a mess," Durward adds. 'In view of this substantial uncertainty it is extremely arrogant not to delay the tax."
A spokesperson for aggregates producer and supplier Allen Newport says quarry operators have no choice but to pay the tax, or else face large fines: "The whale industry Is saying there's nothing we can do about it. We will face a great penalty if we don't pay. There's VAT on the tax too, so it's a double whammy."
Confederation of British Industry director-general Digby Jones is calling for the tax to be delayed for a year, enabling outstanding issues to be
resolved and firms to come to terms with it. -This is red tape and stealth taxation of the worst kind," he says. "It's a very complicated new tax which even Customs officials have not yet grasped."