EU now making waves over ‘green diesel’ for boats

Have they nothing else to be doing in Brussels? Not content with a sustained assault on Ireland’s corporate tax regime, the European Commission is now looking at the tax here of fuel for yachts and motorboats.

Only one month after the Government moved to eliminate the “double Irish” the commission is taking Ireland to Europe’s highest court for not properly applying the tax on fuels of the sea.

The development follows a State-aid inquiry into Apple’s tax affairs in Ireland, an examination behind the scenes of Google’s tax arrangements, divisions over a European tax on financial transactions and no end of squabbles over the establishment of common consolidated corporate tax in the EU.

Now the commission is coming after the use of “green diesel” by Ireland’s boating classes, initiating action in the European Court of Justice over preferential tax charged on fuel for private boats.

No joke. Under EU law states can apply lower excise on fuel used by fishing vessels. This is a boon for fishermen and such fuel must be marked by coloured dye, hence the “green diesel”. European law says it cannot be used by sailors who mess around in boats for pleasure, as distinct from those who fish for a living. Somebody should notify the harbourmasters of Dún Laoghaire and Howth.

Pleasure craft

“Currently Ireland breaches EU law by allowing the use of marked fuel for the purposes of private pleasure craft,” says the commission.

“As a consequence, private leisure boats cannot only use fuel intended for fishing vessels but also risk heavy penalties if they travel to another member state and the boat is inspected by the local authorities.

“Moreover, it cannot be considered that Ireland has properly implemented its obligation to apply a minimum level of taxation in accordance with the relevant] directive.”