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18/04/2002
Fuel smuggling targeted in UK Chancellor's Budget
UK Chancellor Gordon Brown has targeted fuel smuggling with new budget measures aimed at reducing the illegal cross-border trade.
The measures include tighter controls over fuel destined for agricultural use and improved marking of diesel fuel to curb illegal sale of fuel.
The most recent figures available indicate that fuel smuggling was costing the UK treasury and estimated £830 million a year in unlevied tax. Government spending watchdog, the National Audit Office, revealed that in Northern Ireland cross-border smuggling combined with legitimate fuel purchases were costing around £380 million.
In his Budget speech the Chancellor revealed the new measures which will tighten up on regulation of the distribution of rebated fuels such as 'red' diesel. Also under tougher scrutiny will be paraffin and home heating fuel oil. Suppliers will have to be able to produce evidence that sales are going toward approved uses and not to fraudulent traders.
A new European fuel marking agent will be added to 'red' diesel which will make it more difficult to launder the fuel for illegal sale. Among the largest single problems in terms of lost fuel revenue in the UK remains the use of reduced-duty fuel intended for agricultural purposes finding its way into diesel vehicles. In addition the Chancellor set aside more money to detect this type of fuel fraud.
Recent estimates highlighted that in Northern Ireland almost over half of the retail outlets in the province were selling some illegal fuel, and some were selling no legal fuel what so ever.
(SP)
The measures include tighter controls over fuel destined for agricultural use and improved marking of diesel fuel to curb illegal sale of fuel.
The most recent figures available indicate that fuel smuggling was costing the UK treasury and estimated £830 million a year in unlevied tax. Government spending watchdog, the National Audit Office, revealed that in Northern Ireland cross-border smuggling combined with legitimate fuel purchases were costing around £380 million.
In his Budget speech the Chancellor revealed the new measures which will tighten up on regulation of the distribution of rebated fuels such as 'red' diesel. Also under tougher scrutiny will be paraffin and home heating fuel oil. Suppliers will have to be able to produce evidence that sales are going toward approved uses and not to fraudulent traders.
A new European fuel marking agent will be added to 'red' diesel which will make it more difficult to launder the fuel for illegal sale. Among the largest single problems in terms of lost fuel revenue in the UK remains the use of reduced-duty fuel intended for agricultural purposes finding its way into diesel vehicles. In addition the Chancellor set aside more money to detect this type of fuel fraud.
Recent estimates highlighted that in Northern Ireland almost over half of the retail outlets in the province were selling some illegal fuel, and some were selling no legal fuel what so ever.
(SP)
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