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BMF speaks out on Red Diesel

News » Personal Watercraft
Article Date: 2007-11-05
View Count: 2992

The British Marine Federation (BMF) has said that it is continuing to work with government to try and reach a suitable outcome with regards to the loss of the Red Diesel derogation for boaters. Following the decision by the European Commission not to renew the derogation of Red Diesel for leisure boaters, owners of private craft will lose permission to use the low-duty diesel as of November 2008, although the Treasury is still unsure as to how to implement the change.

The BMF is one of a number of boating organisations to submit a response to Her Majesty's Revenue and Customs' (HMRC) Consultation on the matter. In its response, the BMF has said that it would prefer to see self-regulation, which it says would have the least impact on the industry, because fuel suppliers could continue to retail fuel at the rebated rate to recreational boaters, and the individual would be required to declare the additional duty due, limiting the financial and bureaucratic burden on marine companies. HMRC has estimated that the removal of the Red Diesel derogation could spell a revenue gain for the Treasury of between £10 million and £15 million a year, some of which the BMF is calling on the government to set aside to help offset the difficulties industry will face as a result of implementing the changes.


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