Biofuels and Fossil Fuels: Taxation
(asked on 27th February 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make a comparative assessment of taxation on (a) bio fuel and (b) fossil fuels.
This question was answered on 7th March 2025
The UK taxes fuels for a variety of reasons, and tax revenues from fuel are a vital part of overall tax revenues which are used to fund public services. Tax treatment does not generally differ between biofuels and fossil fuels.
The government also ensures the tax system supports climate goals through measures such as the Carbon Price Support and Climate Change Levy.