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Britain steps up crackdown on "diesel cowboys"

Xinhua, July 28, 2015 Adjust font size:

The days of diesel cowboys using illicit fuel to avoid paying taxes are numbered in Britain after the introduction Tuesday of new roadside testing equipment.

Exchequer Secretary to the Treasury, Damian Hinds unveiled the first roadside unit on a visit to Newry in Northern Ireland. It is estimated that in the province alone, the British tax authorities are being cheated out of 125 million U.S. dollars a year by the illegal use in commercial vehicles of fuel earmarked only for agricultural and farm vehicles.

Across Britain it is estimated the illicit use of diesel fuel costs the Treasury 624 million U.S. dollars a year in lost tax income.

The government minister announced the new hi-tech equipment will be introduced at 49 mobile testing units across Britain.

The equipment enables tax officers to test vehicles at the roadside for the presence of a new fuel marker introduced in April into supplies intended for use in agriculture and construction industries.

Known as "red diesel", a dye is added to fuel for use in farm equipment and construction sites to distinguish it from road fuel.

The new marker is resistant to laundering techniques known to be used by criminal gangs and significantly improves the capability to detect fraud.

A spokesman for Britain's taxation and revenue department, HMRC, said: "Previously, the test for the new marker was completed at a laboratory, leading to a delay in identifying illicit fuel and further action being taken."

"The new equipment will now be installed in 49 HMRC Road Fuel Testing Unit vehicles throughout the UK and used to analyse fuel samples taken at the roadside and at retail premises, starting in Northern Ireland," the spokesman said.

Minister Hinds, said: "Together with the new marker it will play an important part in the fight against fuel fraud."

Illicit diesel is estimated to make up 13 percent of the market share of diesel used in Northern Ireland and costs the taxpayer around 80 million pounds each year in lost taxes.

The government will monitor the success of the fuel marker during the first six months, to make sure it is delivering results in the fight against fuel fraud, with an evaluation published later this year. Endit