What Climate Change Levy means for the Dairy Industry
Background
The Climate Change Levy came into effect on 1st April 2001.
The levy applies to:
- Electricity
- Coal
- Coal and hydrocarbon derivatives such as orimulsion and
petcoke
- Natural gas and liquid petroleum gas (LPG)
The Government
already has a fiscal strategy in place for reducing emissions
from road transport, so it does not propose to extend the
levy to diesel, petrol and road fuel gases (Liquid Petroleum
Gas (LPG) and Compressed Natural Gas (CNG)) used by road vehicles.
How much
will the tax cost my company
The levy has
added approximately 15 per cent to your company energy bill.
In conjunction
with the introduction of the levy, Employers’ National Insurance
Contributions were cut by a 0.3 percentage point.
As a major energy
user the tax falls heavily on the Dairy Industry.
The Government
declares that it is giving special consideration to the treatment
of energy intensive sectors, such as the Dairy Industry, given
their high energy cost.
Those energy
intensive sectors which have entered into legally-binding
agreements to implement all energy saving measures which
are cost effective, now qualify for an 80 per cent
discount from the levy rates.
Companies performing
a dairy function can only enter into a government agreement
via Dairy UK.
Does
your Company qualify for the Levy Rebate?
Only the processing
of milk and technically linked processes to that are eligible
for the levy rebate
What
does my company need to do to obtain the reduced rate of the
levy?
The first step is to download and complete
both a DES Application form and a DETR Eligibly form, these
are located on the Register
page. Once completed please send them to DES, we will
then process your application and inform you if you are indeed
eligible for the levy rebate.
For a more in depth view of the Climate Change Levy go to
Further
Information.
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