Call for reducing motor fuel duty in North
28 November 2002: A powerful British Parliament Committee has urged a reduction in fuel duties in the North of Ireland in order to deal with fuel smuggling that is costing the British Treasury E800 million a year.
The Northern Ireland Affairs Committee also wants the British Government to consult with the Irish Government to ensure that duty rates in the two jurisdictions 'move broadly in line' in order to achieve greater harmonistion of retail prices.
The loss to the British tax authorities is made up of both legal purchases of motor fuel by motorists crossing the border, and a strong illegal smuggling operation by criminals and paramilitary organisations.
In a report issued last night, the committee said about 200 filling station operators are 'taking the odd load' of illegal fuel 'in order to stay afloat'.
And it says that the existence of a 'significant' cross-border road fuel differential is 'helping terorism and organised crime to sustain itself. The report also claims that the social fabric of Northern Ireland is 'being undermined by a significant culture of non-compliance' by fuel duty evasion and other areas'.
The committee recommends the implementation of a more comprehensive and effective fuel retail licencing regime, incorporating sanctions for breaches of regulations that would include the revocation of a licence to trade.
Petrol prices in the North of Ireland are 44 per cent higher than in the Republic, and road diesel is 61 per cent more expensive.