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Old May 25th 04, 02:40 PM
Ken Baker
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Default UK red diesel costs.

You have probably heard about the proposed tax increase on "red" diesel .
Worried about the increase I wrote to my M.P. Colin Challen, on15th
February 2004 to ask what was in the pipeline. Colin Challen promptly
passed on my request on the 16th Feb to John Healey, Economic Secretary for
this Government. He chased up this enquiry on the 15th March 2004 and
today, 25th May I have received a reply.

In brief I am informed that as of this time the ordinary diesel for road use
has a 47.10 pence tax per litre whereas the RED diesel is taxed at 4.22
pence per litre. This September 1st sees an increase to 6.24 pence per
litre and 48.52 pence per litre.

He tells me that an agreement under the relevant "European agreements" that
"pleasure" fuel in the E.U is normally taxed at the same rate as the equiv
road type fuel however the United Kingdom enjoys a derogation from this
provision and this allows all private pleasure craft and others to use red
diesel. This derogation is due to expire on 31st December 2006 but we will
have the opportunity to apply for an extension.

The future looks bleak for red diesel users so it may be worth your while
sending in your views to your M.P.

A very useful site is where you can find out
your M.P. and send a fax to him./her.

Good luck.

Ken Baker

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