Aggregates Tax and Devolved Taxes Administration (Scotland) Bill: business and regulatory impact assessment

Consumer Assessment

Under the provisions set out in the Bill, SAT will be paid by producers of primary aggregate.

The tax is intended to encourage the use of alternatives to primary aggregate and to be effective at altering aggregates consumption it is expected that producers will

pass the cost of the tax onto consumers of aggregate. As this is consistent with the current position for UKAL, we expect that the impact on consumers will be minimal.

Actual consumer costs will, however, be dependent on the tax rate set for SAT, which will not be set until closer to the time that the tax comes into force. Separately, any future regulations to change SAT exemptions, credits or the tax rate may have a cost implication where the cost of the tax is passed onto customers.