The Beef Plan Movement is calling for the removal of carbon tax on marked gas oil (green diesel) in its budget submission. This is a completely unfair tax on many levels.
Firstly, it is costing farmers over 17.2c per litre ex-VAT (or 19.5c per litre including VAT). This will rise to over 32.2c per litre including VAT by 2030, which is a huge cost for farmers. When one sees our competitors shipping in beef from South America and Australia with no such carbon taxes, one has to question why we are making our own produce more uncompetitive.
Recent years saw a massive percentage increase of beef imports into the UK market, with Australia alone seeing an over 300% increase following their post-Brexit free trade agreement. Added to this, carbon taxes on fertiliser through the Carbon Border Adjustment Mechanism (CBAM) will further erode our competitiveness. Additionally, the fact that VAT of 13.5% is being charged on the fuel carbon tax represents a form of double taxation.
Why should farmers, builders, truckers, and other productive sectors be expected to fund electric buses for towns and cities, and solar panels for everyone else’s roofs? Meanwhile, others who use these same services just as much or even more, pay far less towards them. It is also worth noting the complete hypocrisy that aviation fuel remains entirely exempt from carbon tax, leaving those on the ground footing the bill.
These carbon taxes are designed to encourage a move away to more environmentally friendly alternatives. While this may work in transportation where electric cars are an option, no such option exists for farmers. There is no viable alternative to using a tractor. Furthermore, this lack of alternatives extends to essential road transport on farms; there is simply no viable alternative to using work 4x4s, cattle trucks, and other farm vehicles. Consequently, the Beef Plan Movement is also seeking a full refund of the carbon tax paid on white diesel used in these farm vehicles, which could be efficiently administered through a rebate system. Therefore, the carbon tax on both marked gas oil and farm road fuels represents a direct tax on food production.
The government may claim the tax is used to fund environmental schemes, but is it fair farmers have to fund schemes which are for the benefit of the general public? Schemes like ACRES cost farmers money through loss of income as they set aside land for nature, reduce stocking density, and reduce inputs. How are the payments compensation if farmers are paying the cost of compensation through carbon taxes?
The end result of this unfair tax, added to all the other rising costs exacerbated by global conflict, is that many of these farmers and builders will simply go to the wall. Then who will produce the food and build the houses? That is a very real problem, and that is why fuel carbon tax and all other fuel taxes need to be substantially reduced or rebated now for this sector.
The Beef Plan Movement is calling on the government to remove these carbon taxes, implement the necessary rebates, and support farmers.