European Union Attacks Red Diesel For Boaters.

[furnessvale]

From HMRC (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000510&propertyType=document#P19_987):

 

"In order that these supplies [for private pleasure craft and for private pleasure flying] could continue to be subject to the reduced rate, an amendment to the VAT legislation was made which removed the excise duty criterion for these specific supplies. Their VAT liability is therefore unchanged in spite of the change in the duty position."

Very interesting but does anyone seriously believe that this situation will continue unchanged when it is white diesel passing through the pump with all the potential for diversion to road use that becomes possible?

 

George ex nb Alton retired

[bozlite]

Very interesting but does anyone seriously believe that this situation will continue unchanged when it is white diesel passing through the pump with all the potential for diversion to road use that becomes possible?

 

George ex nb Alton retired

No - I don't think it could remain unchanged. At least not without imposing some new levels of auditing requirements on those who would be selling it to boaters. Yet another reason, in my view, why the government has no appetite for doing what the EU is asking. They can see a lot of additional expense for boaters and for those who sell them diesel, with no prospect of any significant - if any - increase in revenue for them.

[Doorman]

Wholesale diesel prices have been at their lowest for over 2 years just recently.

 

Keith

Ah, that will explain why we are still being ripped off by the retailers then! Of course, they wouldn't consider passing on the reduced cost to their customers would they?

[ditchcrawler]

Ah, that will explain why we are still being ripped off by the retailers then! Of course, they wouldn't consider passing on the reduced cost to their customers would they?

http://www.indexmundi.com/commodities/?commodity=diesel

[ditchcrawler]

Why would the VAT rate change? As you say, it's all charged at 5% now whether for heating/generating or propulsion. As far as I'm aware, there has been no mention of a change in the rate of VAT as applied to diesel fuel for the propulsion of pleasure boats. I can't see why the government would charge it on white when it's not charged on red now.

 

Keith

20p per litre mark up is more than 30% currently. Wholesale diesel prices have been at their lowest for over 2 years just recently.

 

Keith

If you want to see the mark up on red diesel you only need to look here

http://www.dairyco.org.uk/market-information/farm-expenses/monthly-fuel-tracker/monthly-fuel-tracker/

[Doorman]

http://www.indexmundi.com/commodities/?commodity=diesel

At the equivalent of 53p a litre the Yankee boaters must be struggling to make ends meet!