Government applies for extension to derogation

17 October 2006

Today came the news we’ve been waiting six long months for – the Government has finally submitted its formal application for the extension of the red diesel derogation.

Not a lot is known about the wording of the application, as the Treasury seems keen to keep that under wraps for the time being.

But at least we now have a foothold in Europe. From here, the UK’s application will be assessed by the European Commission’s taxation department, which will then decide if the UK’s case is strong enough to be passed to the EU Council of Ministers for a vote.

The derogation must get a unanimous ‘yes’ from all ministers in the council for it to be extended.