Under the proposals, agricultural or 'green' diesel would be phased out completely with legitimate users of the fuel switching to a rebate system whereby the price difference between fuels could be claimed back in much the same way as company car drivers can reclaim VAT on diesel. In addition to the €150m lost through criminals selling on 'washed' green diesel the new system would also save the estimated €500m it costs to dye agricultural fuel initially meaning an extra €650m each year in the government coffers.
The IRHA has previously proposed the introduction of a fuel rebate system and is meeting with the Department of Finance next week to discuss the proposal.
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