New tax could kill recycling - MPs back call to stop punitive tax Tuesday 12 August 2008 PDF Print The UK’s largest waste oil recycling company is urging Government to rethink its plans to introduce a new tax on recycled fuel oil this November. MPs are already backing the campaign. The OSS Group uses waste lubricating oil, collected from UK garage and servicing centres, to produce a processed fuel oil (PFO) equivalent to virgin fuel oil and known as Clean Fuel Oil (CFO™). It is the best environmentally sustainable means of dealing with some of the 800,000 tonnes of waste oil produced each year in the UK. To date, such waste derived fuel oil has been free of tax. If Government plans go ahead a tax of 9.29 pence will be added to each litre, the same as the tax on virgin heavy fuel oil. According to OSS MD Andy McNair, “This could kill not only the market for recycled fuel oil but also remove the incentive for companies such as us to invest in leading edge recycling technology. “Government wants to encourage recycling. This will have the opposite effect. At present there is a reasonable price difference between the cost of virgin fuel and waste derived fuel. Adding this tax will increase the cost by approximately 30% and bring prices more in line with virgin fuels. The incentive for industry to use recycled fuel will be lost. “Apart from cost, the top quality processed fuel oil burns more efficiently (customers use 5% less) and cleaner; for example a 35% reduction in sulphur emissions. And if waste oil isn’t used as a base for a fuel, where’s it going to go? Over the last year Defra and the EA have been formulating a specification for a clean waste derived fuel. This specification is now out for consultation. McNair; “Waste derived fuel oil produced to this agreed specification should be subject to a much lower tax, if only on environmental grounds.” OSS is lobbying both Defra and the Treasury and has already obtained the backing of MPs Dr Richard Taylor, George Howarth and Collin Challon. According to Dr Richard Taylor “OSS has developed technologies and processes to address a major environmental problem facing the United Kingdom, namely the removal of hazardous waste oil from the waste stream. I am deeply concerned that the Government’s planned duty risks undermining that achievement”. For further information about OSS please visit the company website at www.ossgroupltd.com - Ends - For more media information contact John Dresser on 07831 196404 Editors note: In December 2006, the UK lost its EU derogation that allowed the Government not to charge duty on waste oil when it was used as a fuel. Derogations held by other Member States also came to an end. The Treasury subsequently announced that it would implement the Commission’s decision to charge duty on waste oil reused as a fuel with effect from 1 November 2008. The EU minimum duty rate for heavy fuel oil is 15 euros per 1,000 kilograms, just 1.2 pence per litre. This is generally the type of fuel oil that processed fuel oil is replacing. The UK Government has chosen to apply a higher rate than the EU minimum and has set the duty at 9.29 pence per litre on all processed fuel oils, regardless of quality or environmental impact. This press release was distributed by ResponseSource Press Release Wire on behalf of Kestrel Worldcom in the following categories: Environment & Nature, for more information visit https://pressreleasewire.responsesource.com/about.