Red diesel tax removal to hit refrigerated vehicles

London, UK: The chancellor of the exchequer may use the budget to remove the red diesel concession, according to a report in the Times.

The move is expected because the chancellor is under pressure to maintain the freeze for fuel duty paid by motorists.

Instead, government will raise revenue from sources that can be seen to have environmental impact such as red diesel.

Shane Brennan, chief executive, Cold Chain Federation, said removing red diesel from refrigerated vehicles “would be imposing devastating, unavoidable, costs on to hard pressed hauliers”.

“This proposal could not come at a worse time for a food chain that has been battered by three years of politically-created uncertainty, planning and re-planning for shifting Brexit scenarios.

“Taking action now to remove the ability to use red diesel from critical industries is not the answer to air quality concerns. By imposing this sudden shock to operating costs the government’s action would have exactly the opposite effect, making it even harder for businesses to afford new, cleaner vehicles and equipment and keeping older ‘dirtier’ equipment on the road for longer.

Shane Brennan, chief executive, Cold Chain Federation: “Removing red diesel from refrigerated vehicles “would be imposing devastating, unavoidable, costs on to hard pressed hauliers”

“Our proposals, that have been discussed with ministers and officials for a number of months have been about agreeing a plan that would fit effectively with the timeframes necessary for developing emissions-free technologies out of trial-phase into full operation; giving businesses time to invest in new alternatives in a way that fits with natural lifecycles of existing fleet; and providing the infrastructure that is necessary for diesel alternative like electric power.

“None of these things are in place today and so a change on red diesel rules is just a cynical tax grab that piles the pressure on ordinary businesses trying to serve our communities and economy. 

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