Known as “red diesel” in the UK and “green diesel” in Ireland, the off-road fuel is restricted to use in specific circumstances, primarily in agriculture and construction, and along with kerosene will now feature a new marker intended to make the rebated fuels much harder for fraudsters to launder and sell on at a profit.
HMRC says that the use of illicit diesel is estimated to be 12-13% of the market share in Northern Ireland and about 2% in the rest of the UK.
Nicky Morgan, economic Secretary to the Treasury, said: ‘I am delighted that our two countries have come together to fight the shared problem of illicit fuel. At a time when the government’s priority is cutting the deficit, it is unacceptable that criminals are cheating the system. The government has invested nearly £1bn in HMRC to tackle avoidance, evasion and fraud.
‘Using illicit fuel is not a victimless crime; it robs the government of tax revenue that is used to fund vital public services and puts those businesses that follow the rules at a commercial disadvantage. It also has a severe environmental impact, with considerable clean-up costs for local councils. So we are boosting HMRC’s fight against this fraud by introducing a more robust marker to ensure it is far harder to remove.’
