Cross-sector letter sent urging Chancellor to review tax treatment for red diesel, and to ‘adopt a phased approach for the removal of entitlement to use rebated (red) diesel’.
The letter, dated 14th March, was sent by the United Resource Operators Consortium (UROC) and signed by 12 sectors; the Chartered Institution of Wastes Management (CIWM), the Vehicle Recyclers Association and the British Metals Recycling Association to name a few. It states that “the use of red diesel is imperative for recycling with the majority of plant and machinery running off diesel-powered engines. There is not yet any market-ready kit using alternative fuels to replace that in existence.”
It also states that “operators will inevitably have to try and pass the enormous cost on to customers” and by passing on these costs to consumers, it will have an adverse effect with a “high likelihood of rising environmental crime. Adding more burden to the legitimate waste industry will open the door for unscrupulous operators and result in increased flytipping and serious organised crime.”
It also adds that ‘time is of the essence’, as the entitlement to use red diesel will be removed entirely on 1st April 2022, therefore, the signees request a review of tax treatment for red diesel as soon as possible.
To read the full letter click here.