Drivers and farmers around the country can breathe a sigh of relief after the Government confirmed that taxation of red diesel would not be changing.
Red diesel, or rebated biofuels, are used by farmers and other groups since it is far cheaper than normal diesel and is exclusively used away from public roads.
There had been rumours that the rate of red diesel, which is currently taxed at 11.14p per litre, would be changing, delivering a hammer blow to thousands of users around the country.
Any hike in tax would significantly impact these groups, especially since it has a much lower rate than standard “white” diesel at 52.95p per litre.
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There had been fears that the Government could change the taxation on red diesel
HMRC/PA
The Department for Transport estimates that red diesel makes up over 15 per cent of total diesel use around the country, with the Government launching a consultation in 2018 to better understand the use of the fuel in different sectors.
Speaking to Martin Daubney on GB News last night, Howard Cox, founder of FairFuel UK, said: “In the space of 48 hours, about 10,000 emails went to [The Treasury].
“So, they’re under no illusion that we’re going to take this lying down.
“I didn’t expect to get a continued freeze on duty tax last Budget, back in last Autumn. I was quite shocked by that.”
The fuel is dyed red with chemical markers to differentiate it from standard diesel to ensure that HMRC can enforce the law.
If caught illegally using red diesel, drivers may have to pay the fuel duty evaded, going back up to four years, and pay a “wrongdoing penalty” based on the extent of their illegal fuel use.
HMRC can also seize the oil and any containers and equipment used to abuse red diesel rules under Section 9(2)(a) of the Finance Act 1994.
A Government spokesperson previously told GB News that it would not be commenting on speculation ahead of the Spring Statement.
WATCH: Howard Cox – How farmers stopped Labour’s red diesel tax hike
Standard vehicles are not allowed to use red diesel on public roads and can face hefty fines
WMPTRAFFIC/ X
