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Finance (No. 2) Bill

With this it will be convenient to discuss the following: New clause 6—VAT and hydrocarbon oil duty offset— ‘In the Hydrocarbon Oil Duties Act 1979 (c. 5) section 6 (excise duty on hydrocarbon oil) there is inserted after subsection (1A)— ““(1AA) In every Budget Statement the Chancellor of the Exchequer shall provide his forecast for oil prices and set out anticipated yield from fuel duty and VAT on fuel for this price and for a range of prices up to 50 per cent. above his forecast. (1AB) In his 2006 pre-budget report the Chancellor of the Exchequer shall bring forward a mechanism for— (a) using additional revenue from VAT on fuel above forecast to offset fuel duty when the oil price rises above his forecast level, and (b) providing specific fuel duty reductions targeted at fuel sold in sparsely populated areas; and the Chancellor of the Exchequer shall by order define ‘sparsely populated areas’ for the purposes of this section. (1AC) Whenever international oil prices rise above the level 4 July 2006 : Column 738 estimated by the forecast made in accordance with subsection (1AA), indexed fuel duty increases shall be frozen until the international oil prices return to the forecast level.””.’. Amendment No. 123, in clause 13, page 14, line 15, leave out Table A and insert— CO2 Emissions figure Rate (1) (2) (3) (4) (5) Exceeding Not Exceeding Reduced Rate Standard Rate Premium Rate Households with a postcode ina remoterural area Householdswith a postcode ina remoterural area Householdswith a postcode ina remoterural area g/km g/km £ £ £ £ £ £ 100 120 30 15 40 20 50 25 120 150 90 45 100 50 110 55 150 165 115 57.50 125 62.50 135 67.50 165 185 140 70 150 75 160 80 185 - 180 90 190 95 195 97.5 Amendment No. 129, page 14, line 26, leave out Table B and insert— CO2 Emissions figure Rate (1) (2) (3) (4) (5) Exceeding Not Exceeding Reduced Rate Standard Rate Premium Rate Householdswith a postcode ina remote rural area Householdswith a postcode ina remote rural area Householdswith a postcode ina remote rural area g/km g/km £ £ £ £ £ £ 100 120 30 15 40 20 50 25 120 150 90 45 100 50 110 55 150 165 115 57.50 125 62.50 135 67.50 165 185 140 70 150 75 160 80 185 225 180 90 190 95 195 97.50 225 - 200 200 210 210 215 215 Amendment No. 125, page 15, line 8, at end insert— ‘(3A) After paragraph 1B insert— ““1BB For the purposes of paragraph 1B above, ‘remote rural area’ shall be defined in regulations made by the Treasury by statutory instrument.””.’.