BMF Red Diesel Update 01-12-2007
The British Marine Federation is continuing to work with Government to ensure a suitable outcome regarding the loss of the Red Diesel derogation for private pleasure boats. As part of its ongoing work, the BMF has recently submitted its response to HMRC's Consultation. It outlines its preferred option of self regulation, which would have the minimum impact on the industry as it would permit fuel suppliers to continue to retail fuel at the rebated rate to recreational boaters, requiring the individual to declare the additional duty due periodically. This is the industry's preferred option as it limits the cost, bureaucratic and compliance burden on marine companies who supply fuel.

Other options have been mooted, including the supplier collecting the duty or switching to unmarked fully duty paid ULSD. The BMF has outlined the difficulties with both of these options and the problems they would force on the industry. HMRC estimates that the removal of the Red Diesel derogation would lead to a revenue gain for the Treasury of £10 million to £15 million a year. The BMF has called upon the Government to set aside some of the additional money it expects to gain to help offset the difficulties industry will face implementing any changes. The BMF will continue to work with Government to achieve the best possible outcomes for all parties involved.