Red Diesel Tax hike

iratnl

I've just heard on the news that boat owners will now have to pay the full tax on Diesel; does anyone know how much this will affect charter boat prices ?

Andy M

I understand charter boat skippers can claim it back in their tax return. Tax is being done at source to combat red diesel fraud. Therefore, charter boat prices shouldnt rise any more than inflation.

Andy

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lizardland

And sofnolime will become tax deductible too

You can bet there will be plenty of boats that will use this as an excuse to hike up their prices using the line: "well, we don't see any of that reclaimed money until next year".

Cheers,

Stuart

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Genesis

That's a new one.

Where'd you hear this? I can't find it anywhere with a quick search.....

It has always been true that if you use undyed (taxed) diesel for off-road purposes you can claim the tax on your income tax return and get it back. You need to keep receipts, etc.

This is far more serious if true than just applying to boats. Dyed fuel is also used in refers on trucks (which is why they have a little separate tank under the trailer!), it is used on boats of course, it is used on FARMS (and farmers use a LOT of diesel fuel), in locomotives (non-road) and in stationary or construction applications (generators both standby and prime power, bulldozers, cranes, etc)

The road tax is about 50 cents/gallon and varies by state. This is not a small amount of money.

There is not nearly the issue with fraud that you might think. If you put a tank of dyed fuel into a truck, for example, the dye will be visible for up to a dozen tanks of fuel thereafter! Its damn near impossible to get rid of it once its in the vehicle, and the fines are extreme if you get caught. It is absolutely common for DOT guys who stop trucks for routine inspections to "dip" their fuel tanks - and may God help you if the strip comes out pink!

After Katrina diesel was so hard to get that the government ALLOWED the use of dyed fuel in road vehicles for a short while in this area without penalty. I never ran into the need to run it in my Jetta, but I had 400 gallons in my boat, and you can bet that if I couldn't have bought any undyed I would have tapped that reserve!

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PhilSiswick

Karl,

This is in the UK, I believe. We had a pre-budget statement yesterday, so I would think that it was in that.

Bleaching of dyed fuel is reported to be a major problem in the EU, so this move makes sense to me. Shame that some may use it as an excuse to ramp up boat charges, but there is probably enough competition on the South Coast to mitigate that a little.

Of course, with the fuel tax hike on normal fuels, it'll cost a few more pence to get to the boat as well :-(

Cheers,

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Genesis

OK, UK. My bad - that explains why I didn't see anything in the US

That's what I get for not looking at who's posting it

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"A venturesome minority will always be eager to get off on their own, and no obstacles should be placed in their path; let them take risks for Godsake, let them get lost, sunburnt, stranded, drowned, eaten by bears, buried alive under avalanches - that is the right and privilege of any free American."
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http://www.diversunion.org/liability.htm - Fix the Diving Cert racket

Ivon

Will this be the same for private diesel boats?

Frog Princess

Ivon
as far as i know the price of red diesel isnt going up but you have to be registered as a commercial vessel to actually use it and buy it from a marina or fuel company.
from 1st jan 2007 all private vessels will have to use white diesel (unless of course they run on petrol).
all dive vessels operating commercially should have a code of practice certificate so if they try to use this as an excuse to charge more then they are either talking crap or havent got the relevent COP and therefore are taking your money illegally.
Julie

Andy M

In the UK, Dive club boats count as commercial so they can recover the tax. BSAC have an advice note somewhere on their website.

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colinicky

From my understanding they were stopping the sale of red diesel completely & registered charter boats would be able to claim back all the duty on white diesel ? Usual story of nobody giving a black & white answer from the goverment !

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