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Fuel tax plan set to be rejected Fuel tax plan set to be rejected
(10 minutes later)
A Westminster committee is expected to reveal that the government has rejected a recommendation to reduce tax on fuel in NI to try to combat smuggling.A Westminster committee is expected to reveal that the government has rejected a recommendation to reduce tax on fuel in NI to try to combat smuggling.
The Northern Ireland Affairs Committee called for the measure in a report into organised crime in July.The Northern Ireland Affairs Committee called for the measure in a report into organised crime in July.
It said taxes should be at the same level as in the Republic of Ireland to reduce the profit margin for smugglers.It said taxes should be at the same level as in the Republic of Ireland to reduce the profit margin for smugglers.
The government is concerned that would prompt criminals in Britain to start smuggling fuel from Northern Ireland.The government is concerned that would prompt criminals in Britain to start smuggling fuel from Northern Ireland.
However, Ray Holloway from the Petrol Retailers Association, said that was "just an excuse".
"It's much easier to apply controls to a sea crossing than it is to a landborder," Mr Holloway said.
"The report is putting off addressing a problem that they've not wanted to address for a very long time."
In June, the organised crime task force said fuel smuggling and laundering in Northern Ireland cost the government £245m in lost revenue in 2005.In June, the organised crime task force said fuel smuggling and laundering in Northern Ireland cost the government £245m in lost revenue in 2005.