IWA asks members to act on red diesel consultation
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Inland Waterways
Article Date: 2007-09-05
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Currently, the future option on red diesel preferred by both HMRC and the IWA is to allow its continued use, but at a higher rate of duty, which would save the significant cost of building a new fuel infrastructure and replacing equipment aboard boats that would be incurred if its use was no longer permitted. Another key issue that IWA wants to see addressed and for its members to comment on, is the taxation of fuel used for heating and generating electricity. The IWA feels this should not be taxed, but because of constraints on flexibility on space, many boaters cannot fit a second fuel tank for these purposes. The IWA has argued in negotiations that for many non-residential boaters, the split of fuel usage was 75 per cent for driving and the remainder for power and heating, and therefore at the point of purchase, boaters could sign a declaration and receive an immediate 25 per cent tax rebate on the fuel they buy. IWA hopes that the HMRC can be persuaded that this would be a more simple and effective solution to the issue and would also be in line with European Union rules. Roger Squires, chairman of IWA's navigation committee, said: "IWA has lobbied hard to mitigate the effects of the removal of the derogation on diesel, but now calls upon its members and all other interested parties to join in making one last concerted effort to make full use of our democratic rights and respond to the consultation in support of the IWA position on the 75/25 tax split. "It is absolutely essential that we get Customs and Revenue to take notice through an avalanche of individual boaters' responses."
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