This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/northern_ireland/6076084.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Fuel tax plan set to be rejected Government rejects fuel tax plan
(about 6 hours 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. 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. However, NIO minister Paul Goggins said this would conflict with UK-wide tax policy as well as environmental policy, and might not stop smuggling anyway.
However, Ray Holloway from the Petrol Retailers Association, said that was "just an excuse". The NI Affairs Commitee report also called on the government to change the point at which duty is paid on fuel.
"It's much easier to apply controls to a sea crossing than it is to a landborder," Mr Holloway said. Mr Goggins said he was not convinced that changing the duty point is the answer to reducing the risk of fraud.
"The report is putting off addressing a problem that they've not wanted to address for a very long time." Ray Holloway, from the Petrol Retailers Association, said the government was coming up with excuses not to act.
He said they were "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.