Pesticide tax now a last resort
9 November 1999
Pesticide tax now ‘a last resort’
By Donald MacPhail
THE Government still favours a pesticide tax as a last resort – but would rather work with the agrochemical industry to try to reduce the impact of pesticides.
In his pre-Budget statement, Chancellor Gordon Brown says the tax would be “a useful tool” for addressing the environmental impact of pesticides.
But he adds: “The Government intends to explore with the agrochemical industry whether its objectives can be better achieved through a partnership approach between the Government and the industry.
Further discussions will now be held prior to the next Budget on ways to meet Government objectives to minimise the impact of pesticides.
Plans for the controversial green tax had met with strong opposition from farmers leaders and the agrochemicals industry.
There were also fears it could drive cash-strapped farmers out of business.
The Chancellor also announced that a climate change levy, or energy tax, has been reduced from £1.75 billion to £1bn.
There will be 80% discounts for energy-intensive sectors which sign energy-efficient agreements.
Exemption from the levy will be granted where electricity is generated from “new” renewable sources of energy and “good-quality” combined heat and power plants.
The fuel escalator – under which duty is raised annually by 6% more than inflation – has been scrapped.
Instead the Chancellor will make a decision Budget by Budget. Any real-term increases in fuel duty will in future be ring-fenced to improve roads and public transport.
Rural communities, which rely on private transport, had been especially hard hit by the fuel escalator duty.
- Treasury tight-lipped on spray tax, FWi, 01 November, 1999
- Pesticide tax plans abandoned, FWi, 01 November, 1999
- NFU slams pesticide tax plan, FWi, 13 August 1999
- Pesticide tax would be a disaster, FWi, 29 June 1999
- Pesticide tax is worth the job losses, FWi, 24 March 1999