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Contents Income tax |
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Alcoholic drinks Duty on spirits has been frozen. Duty on most other alcoholic drinks will be increased in line with inflation from 1 April 2000. |
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Tobacco products Tobacco taxes have been raised by 5% on top of inflation with effect from 1 April 2000. |
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Air Passenger Duty (APD) APD will be reduced from £10 to £5 on economy flights within the European Economic Area (EEA) with effect from 1 April 2001. Duty will be abolished on flights from the Scottish Highlands and Islands with effect from the same date. Duty on first and club class return flights will remain at £10 within the EEA and will increase to £40 to other destinations. |
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Betting duty Customs will consult on reforming general betting duty. |
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Quarrying levy A new levy to tackle the environmental costs of quarrying was announced by the Chancellor. |
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Vehicle Excise Duty (VED) There are several changes to VED. With effect from 1 March 2001: VED for existing cars, taxis and vans will increase to £160; the reduced rate of VED for existing cars will be extended to apply to cars with engines up to 1200cc. This rate will be £105 per annum; a new scale of excise duty will apply to all new cars based on their rate of CO2 emissions. There will be four different bands of duty. Changes implemented from 6pm on Budget day include: a reduction of £1,800 in duty applying to 40 tonne / 5 axle lorries; a reduction of £500 in duty applying to 38 tonne / 5 axle lorries and 41 tonne lorries. Most other lorry VED rates are frozen. |
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Fuel duties Rates of duty on petrol and diesel rise from 6pm on Budget day: 1.89p per litre on unleaded petrol and ultra low sulphur diesel; 0.72p per litre on ultra low sulphur petrol, with a 1p per litre incentive to be introduced from 1 October 2000; 1.97p per litre on higher octane unleaded petrol including lead replacement petrol. |
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Tobacco fraud A package of measures has been announced to strengthen Customs’ powers to tackle tobacco smuggling. Top of page / contents |