Government holds off from red diesel tax hike

DEFRA and the Treasury have decided not to propose greater tax on red diesel, at least for now, following feedback from industry about the cost and lack of alternatives.

The news came in its summary of responses to a call for evidence on the use of red diesel to fuel non-road mobile machinery (NRMM), such as dump trucks, cranes, freight trains, portable generators, airport ground vehicles and canal boats. The finalised Clean Air Strategy’s failure to mention tax reform had already hinted at the decision.

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