Yachts to face same Vat rate on diesel as cars

The Government has been warned to charge pleasure boats and yachts the same price for their diesel as motorists have to pay or face prosecution and fines.

Currently they are allowed to use green diesel that is duty-free and has a lower Vat rate, but under EU rules this should be available only to fishing vessels, farm vehicles and for heating.

The green, duty-free diesel costs about €1.10 a litre, and with duty could bring it closer to €1.50. The Vat rate on green diesel is also lower at around 13%, while for clear diesel it is 23%, which, according to the Cruising Association of Ireland, could bring the cost closer to €2 a litre.