No: CE 19                                            28 November 1995


BUDGET 1995 : EXCISE

RELIEF FROM DUTY ON MINERAL OIL USED ON 
MARINE VOYAGES CONFIRMED

The Chancellor announced that there will be legislation to provide 
relief from excise duty on all mineral oils used as fuel by 
commercial vessels during marine voyages. The legislation will 
replace a concession which allowed the immediate introduction of the 
relief in accordance with an EC Directive.


NOTES FOR EDITORS

1.     This is part of the private sector drafting initiative. The 
other Customs measures in the initiative are exemption from air 
passenger duty for passengers on short pleasure flights (see press 
release CE 23), and the package to simplify EC trade (see press 
release CE 4).

2.     The concession was introduced in January 1995. It applies only 
to the marine element of voyages made by commercial vessels. It does 
not waive duty on any element of voyages in inland waters.

3.     Relief had previously been restricted to any oil used on board 
RNLI lifeboats and most registered fishing boats, and heavy oil used 
as fuel for the machinery of commercial vessels (including 
hovercraft) engaged on voyages in home waters.

4.     The principal beneficiaries of the extension of relief were 
commercial operators of small petrol driven vessels (other than 
fishing boats, which already benefited from it). These include 
vessels involved in commercial transport, diving support, marine 
surveying, inshore rescue and safety work, and fish farming at sea.

5.     The estimated revenue cost of this measure is nil.


6.     Details are in Budget Notice BN 54/95 and Notice 263 Marine 
Voyages: Excise Duty Relief. For copies of the Notices and further 
information, traders and their advisors should contact their local 
Excise and Inland Customs Advice Centre, listed under Customs and 
Excise in the telephone book.




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