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Commission approves extension of island fuel duty relief scheme

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The European Commission has published a proposal for a Council decision authorising the UK to continue the island fuel duty relief scheme beyond expiry of the current decision on 30 October 2017. The scheme allows a 5p/litre fuel duty reduction for retailers of road fuel on the Inner and Outer Hebrides, the Northern Isles, the islands in the Clyde and the Isles of Scilly, through a derogation from the energy taxation directive. The new authorisation would run from 1 November 2017 for a period of six years until 31 October 2023.

The decision will be subject to the outcome of negotiations for the UK’s withdrawal from the EU and, in absence of any special provision in the withdrawal agreement, will apply only until the UK ceases to be a member state.


Issue: 1354
Categories: News , Indirect taxes , VAT