CBI calls for Aggregates Levy to be delayed

The Aggregates Levy, which is a tax on the quarrying of raw materials such as sand and gravel used in the construction industry, is due to be introduced on 1 April, but the CBI claims that the regulations are still unclear on many issues. The Government's own guidelines say new measures of this kind should be announced at least three months in advance.

"The introduction of the Aggregates Levy should be delayed because it is causing chaos and confusion to businesses across the country. The announcement of the details is so late that it even breaks the government's own guidelines." So said CBI Director-General, Digby Jones. The CBI is calling for the tax to be deferred for a year to allow outstanding issues to be resolved and firms to come to terms with it.

The need for a delay has been further emphasised - according to the CBI - by a High Court ruling that the government must justify the tax in a full hearing later this month. That is likely to end only days before the tax's intended start date and the judge has indicated he will not reach a decision until after that. Specifically, the CBI claims that a House of Commons statement last Tuesday (12 March) failed to answer questions on the following:

- Exemptions for particular uses. For example the same material may or may not be subject to the tax depending on the use it is put to so, while sand for concrete will be taxed, it appears that playsand will not and the status of using sand for golf course bunkers, treating sports pitches or horticultural compost mixes, has still not been clarified.

- Producers in Northern Ireland are to be given temporary relief to lessen the immediate effect of cross border price differences but the precise details of that relief have not been given and the problem will remain in the long term.

- The limited ability of, for example, suppliers, sub-contractors and contractors already tied into contracts, particularly long term ones, to pass the tax on to customers has not been addressed.
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