The impact on the cost of Red Diesel to the maritime sector

Finally, the British government has revealed its position on the future of Red Diesel and not good for ratings.

But first ...

What red diesel?

Until now, the English ships were able to craft with red diesel, the reduction in VAT is the fuel. Colored with red dye to make them more expensive varieties of red diesel is usually about 40 pence per liter less than half the national average for diesel fuel inPatio.

Application.

In recent years, permission to use red diesel, not only national but also a recognition of the European Union. The reason is the policy of the EU, designed to harmonize taxes on fuel and energy, and the fact that consent to use depends on the red diesel derogation (exception) of those rules across the EU.

The Royal Yachting Association (RYA) fought the possibility of extending the exception of the UK leisure boat red diesel reduced workload. In October 2006, the BritishGovernment has decided to support the case. However, he was the head of the EU, the government has accepted the arguments and decided that the exemption should be terminated with effect from the end of December 2006. Now there's a truce in force for the withdrawal of red diesel in the UK. In sports cars, red diesel will remain legally available until November 2008.

Honesty is the best policy.

HM Revenue & Customs (HMRC) has decided that users of recreational craft to use applicationred diesel, provided a guide on the supplier and pay the full rate of tax on heavy fuel oil.

The following explains the responsibilities of registered dealers in controlled oils (DROP) of fees collected for HMRC. What makes the situation is less clear that the fuel for domestic use (not for navigation) is considered the lowest fare available.

"Availability and Security.

Dave Fitzgerald HMRC has confirmed the basic policy was established, butHMRC to work closely with the RYA, BMF and other stakeholders to develop the details of the reporting process and distribution of fuel for domestic use.

After this consultation, HMRC to produce a general guideline.

"Our main concern is the availability and security," said Neil Northmore, RYA Government Affairs, the consultant.

"We knew there was a danger that some retailers in remote areas simply do not bother to sellSightseeing boats on the premise that there is more pain than necessary to distinguish between commercial and private vessels, and then process the documentation. "

Raising taxes.

Pridding Howard, CEO of BMF, said:

"We are very pleased with how the consultation and HMRC's position was finally approved was a pleasure. With the purchase of fuel, people must sign a statement indicating whether your boat is for commercial or privateuse. "

It is then up to HMRC if they are to consider whether the purchase was correct or not wanted, "he said.

The future of Red Diesel.

February 28, 2008, HM Revenue & Customs revealed that from 1 November this year, boaters pay a fee of 56.94 pence per liter instead of the current interest rate of 9.69 pence per liter.

And 'illegal diesel on board are happy if you can prove that they can be purchased at the highest rateof duty, which means that users must keep a record of all purchases of diesel fuel.

Diesel is purchased for use as fuel or type recesses. To add another complication, there is a system that claims to have taken some diesel can be used for domestic purposes!

Only time will tell how to beat these new markets, but it's hard to imagine that there is some impact.

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