Annual Cereals And Oilseed Levy Rates 2006

The Home-Grown Cereals Authority (HGCA) levy rates payable by cereal and oilseed growers and cereal dealers and processors will remain the same as last year, Defra announced today.

An Order laid before Parliament on 24 May 2006 set the levy rates that will apply from 1 July 2006 to 30 June 2007.

The detailed rates with effect from 1 July 2006 are:

* the cereal grower levy remains at 40p (plus VAT) per tonne on cereals sold into intervention by a grower directly or through an intermediary.

* the cereal dealer levy remains at 43.3p (plus VAT) per tonne of cereals purchased direct from growers (this figure includes a sum equal to the cereals grower contribution of 40p (plus VAT)).

* the standard rate cereal processor levy remains at 8.25p (plus

VAT) per tonne on cereals sold and delivered to cereal processors other than animal feed processors.

* the reduced rate cereal processor levy remains at 4p (plus VAT) per tonne on cereals sold and delivered to animal feed processors.

* the oilseed grower levy remains at 65p (plus VAT) per tonne on oilseeds sold by growers.

HGCA Levy Scheme rules mean that liability for payment of levy arises when property in the cereals and oilseeds passes to the purchaser. In all cases the purchaser is required by the terms of the levy scheme to register with the HGCA and collect the levy. These rules apply to all buyers, including other farmers purchasing directly as an alternative to buying from a dealer or merchant. In all cases, the buyer is legally required to register with HGCA and to collect the levy.

Any person who does not comply with the requirements of the legislation applicable to registration, furnishing returns, providing information, documentation and keeping records, or who recklessly or deliberately makes false statements, will be committing an offence and will be liable to a fine and/or imprisonment.