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Red diesel consultation offers sensible solution

RED DIESEL: The government’s promised consultation on red diesel holds out hope for boaters and the marine industry by adding duty to existing supplies.
Northmore: ‘it’s evident that HMRC has worked hard to develop options that could work for all concerned’
Northmore: ‘it’s evident that HMRC has worked hard to develop options that could work for all concerned’

Allowing red diesel to continue to be sold at a higher rate of duty will save huge sums that would otherwise have had to be spent on upgrading the fuel infrastructure and tanks on boats.

Following extensive representations by the British Marine Federation (BMF) and the RYA, along with the Inland Waterways Association (IWA) and the Federation of Petroleum Supplies (FPS), HM Revenue and Customs (HMRC) has indicated its preferred option is to continue to allow leisure boat users to use red diesel while paying the full rate of duty.

This would enable the current infrastructure to be used and users would not have to change or add tanks on their boats. The added costs of providing new equipment threatened the profitability of fuel providers and would dramatically reduce the availability of fuel to leisure boaters.

The consultation, which also includes other options currently not preferred by the government, is open to all members of the public and will run until October 31, 2007.

The easiest way to read and respond to the consultation is online at www.hmrc.gov.uk/consultations

‘We are pleased that both recreational boater’s concern’s and those of the marine industry have been heard and incorporated,’ commented Neil Northmore, RYA government affairs adviser. ‘It’s evident that HMRC has worked hard to develop options that could work for all concerned.’

'We will now be consulting with our members to gauge their views on the best way forward to ensure that the details of any scheme are right for boaters and the marine industry,’ said Howard Pridding, BMF executive director. ‘We would encourage all interested parties to read the consultation and then feed their views into us and also the HMRC.’

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Northmore: ‘it’s evident that HMRC has worked hard to develop options that could work for all concerned’

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