Tax harmonisation to beat fuel smuggling 'unrealistic'

The British government today refused to align fuel duty in Northern Ireland with tax rates in the Republic in a bid to tackle petrol smuggling across the border.

Following the publication of Professor Ronald Goldstock’s report on tackling organised crime, Northern Ireland Office Minister Ian Pearson confirmed that a pilot scheme to tackle illegal conduct in the private sector would be operating within weeks.

But, while he welcomed the findings of the report by the New York organised crime expert, he ruled out any move to harmonise fuel duties in a bid to hit the pockets of those profiting from petrol smuggling.

Mr Pearson said: “I do not believe it is realistic.

“It would be wrong to let UK national taxation policy be driven by the problem of organised crime.

“It is clear that if you do have different fuel duties that creates an incentive for smugglers.

“However, the best way of tackling them is to get in there and disrupt them and bring them to justice.”

The NIO Security Minister said police and customs were already having successes against the illegal fuel trade.

During Operation Nursery, police and customs on both sides of the border seized 13,000 litres of illegal fuel and took five tankers off the road in south Armagh, south Down and north Louth.

“We need to be doing more of that,” Mr Pearson said.

“Every day, customs and police are working towards that and you can see the results.

“Deliveries of legitimate fuel have increased by 7% for the second year running after five years of decline.”