Marker to combat fuel laundering

Authorities in the Republic, Northern Ireland and Britain are working on a new diesel fuel marker which is aimed at closing down the €150 million a year illegal fuel industry.

News of the joint scheme was contained in a report on the haulage industry launched by the Oireachtas Committee on Transport today.

The report “welcomed progress made to date on a single tender procedure for a marker for rebated diesel” by the cross-Border authorities and went on to stress the importance of the work in combating the activities of organised criminal gangs. It also called for greater penalties for retailers in the Republic who are caught selling illegally laundered diesel.

Laudering ‘green’ or rebated diesel involved removing the marker dye in the oil and selling it as taxed diesel. With excise duty in the region of 40 cent per litre and vat chargeable the profits from illegally laundered fuel can be large. The process also causes a sludge to be created which can be toxic to the environment.

The committee also recommended the Government consider the an “essential users rebate” on tax paid on diesel for the haulage industry. In making this recommendation the committee was mindful of the increasing costs on the industry through fuel price rises, which also create a “windfall” taxation benefit for the exchequer.

The report noted five EU states, Spain, France, Belgium, Hungary and Slovenia currently use the possibility of having lower tax rates for commercial‘ diesel. In these countries the rebate applies to lorries over 7.5 tonnes.

In a further move the committee said a change to the road tax system to a pay-as-you-go system incorporating the use of digital tachographs, would assist hauliers. This arises from hauliers complaints that they have to pay road tax for their vehicles in advance, regardless of whether they have work for the vehicles. Representative told the committee many taxed lorries remain unused in hauliers yards, while it was unfair to have to fully tax a vehicle when it is only used part time.

Vice-Chairman John O'Mahony TD said the committee has been concerned about the plight of the road haulage industry in Ireland and has attempted to establish a pathway to secure the long term viability of the industry.