Looks like the red diesel question may be resolved

[Malish]

On the BBC web site this morning:

"Rishi Sunak is set to announce in next week's budget that red diesel - so-called because it is marked with a dye - will no longer attract a lower fuel duty. It currently accounts for about 15% of total diesel sales in the UK and costs the Treasury about £2.4bn a year in revenue. "

Greener petrol at UK pumps to target emissions

 

[boatsRus]

That will upset an awful lot of farmers and fishermen, as well as the boating community.

 

[Boathook]

That will upset an awful lot of farmers and fishermen, as well as the boating community.

I suspect that the farmers and fisherman will claim the tax back via tax returns. If they can't I can see food prices increasing.

 

[boatsRus]

Hard to see how the Chancellor will make £2.4bn in extra revenue if he has to give most of it back to farmers and fishermen via their tax returns!

 

[Old Harry]

That will upset an awful lot of farmers and fishermen, as well as the boating community.

Farmers & fisher folk if VAT reg will make no difference to them
The tories are saving the planet

 

[Old Harry]

The red diesel irony.

 

[[70521]]

That will upset an awful lot of farmers and fishermen, as well as the boating community.

Really depends if you sail or motor.

I use about 40 lts a year. I moved to white diesel years ago after having a dose of the bug and I am convinced it was because of low turnover from a supplier.

 

[lw395]

The other big user of red is construction machinery.
No doubt some of the extra billions of revenue will get added back on the bill for HS2 and other infrastructure products?

Presumably fishing boats will be nipping over to France or Jersey to fill up now?

I can see people will switch from diesel generators etc to LPG, or try running things on heating oils, kerosene etc.

 

[Old Harry]

The other big user of red is construction machinery.
No doubt some of the extra billions of revenue will get added back on the bill for HS2 and other infrastructure products?

Presumably fishing boats will be nipping over to France or Jersey to fill up now?

I can see people will switch from diesel generators etc to LPG, or try running things on heating oils, kerosene etc.

any Construction Co will do VAT & Tax returns, it will make no difference to them

 

[fisherman]

Fishermen claim fuel duty back, in 2018 was 11.14p/litre, claim is made periodically, not within a time limit, and not less than a minimum cost. Some bonded supply comes duty free. Separate from tax and VAT. Don't know about farmers.

 

[anoccasionalyachtsman]

Ermm, surely it the 58p/litre fuel duty and not the 19p Vat increase that'll most upset users - and I don't think anyone can claim fuel duty back can they?

 

[anoccasionalyachtsman]

Fishermen claim fuel duty back, in 2018 was 11.14p/litre, claim is made periodically, not within a time limit, and not less than a minimum cost. Some bonded supply comes duty free. Separate from tax and VAT. Don't know about farmers.

Ah, you just answered my question - I'd no idea you could claim the duty back.

 

[matt1]

Really depends if you sail or motor.

I use about 40 lts a year. I moved to white diesel years ago after having a dose of the bug and I am convinced it was because of low turnover from a supplier.

I moved back to exclusively red diesel believing it had less bio content compared to white and the single source I get it from has a very regular supply all pre-treated with one of the bug killers (I forget which!)

 

[Graham376]

I moved back to exclusively red diesel believing it had less bio content compared to white and the single source I get it from has a very regular supply all pre-treated with one of the bug killers (I forget which!)

It doesn't say red is finishing, just that duty on it is increasing to normal levels.

 

[dom]

Alas it seems to me yet another poorly researched Beeb story.

There must be some offsetting mechanism for farmers and fishermen, for a sudden hit like that would push many under.

I'll bet there is when the details are published. Construction will be more interesting

 

[LONG_KEELER]

I think many people would like everything to reflect it's real cost , then the individual
can make up his/her mind whether to take part or not. This gives power back to the people.

With regard to foreign imports having either subsidies or produced unethically, the UK now has the machinery to deal with it.

 

[dom]

With regard to foreign imports having either subsidies or produced unethically, the UK now has the machinery to deal with it.

Interesting thought. The UK could certainly then implement tariffs on imported food subject to upstream subsidies.

Which would raise food prices in the UK vis a vis Europe causing smuggling galore and unhappy UK consumers.

Certainly possible, but a treacherous political route

 

[MoodySabre]

How does this move the issue along? It is not the tax or duty that is the problem but the dye . Every Marina has a tainted tank and so cannot just switch over to white.

 

[dom]

How does this move the issue along? It is not the tax or duty that is the problem but the dye . Every Marina has a tainted tank and so cannot just switch over to white.

If red diesel is no longer rebated then marinas can stock any colour they like!

 

[[70521]]

How does this move the issue along? It is not the tax or duty that is the problem but the dye . Every Marina has a tainted tank and so cannot just switch over to white.

They can, it will just be pink for a while!

If there is no difference in duty then as Dom says they can dispense any colour they want.