The European Commission has formally requested Ireland to amend its legislation to ensure that private pleasure boats can no longer buy lower taxed fuel intended for fishing boats.

Under EU rules on fiscal marking for fuels, fuel that can benefit from a reduced tax rate has to be marked by coloured dye. Fishing vessels for example are allowed to benefit from fuel subject to a lower tax rate but private boats must use fuel subject to a standard rate. According to the Commission, Ireland currently breaches EU law by allowing the use of marked fuel for the purposes of propelling private pleasure craft. As a consequence, private leisure boats can not only use fuel intended for fishing vessels, subject to a lower taxation, but also risk heavy penalties if they travel to another Member State and the ship is checked by the local authorities. The Commission’s request takes the form of a reasoned opinion. In the absence of a satisfactory response within two months, the Commission may refer Ireland to the EU’s Court of Justice.

Further details are available on the Commission’s website.