Fact: Low-tax fuel – that’s how it works
Only vessels used for the transport of passengers or goods for compensation, public authorities, voluntary defense organisations, maritime rescue, fire monitoring and similar activities may be operated with low-tax fuel. It also goes by the name labeled fuel.
The Energy Tax Act, which regulates the use of labeled fuel, has been in place since 1994.
The Swedish Tax Agency is the main responsible authority but lacks the conditions required for the physical controls, which are therefore carried out by the Coast Guard.
The checks are carried out throughout the year with Coast Guard units along the entire coast of Sweden, in Mälaren and Lake Vänern. Especially many checks are carried out during week 27.
Source: Coast Guard
The special checks are carried out between 3 and 9 July.
The recreational boats may not be fueled with low-tax diesel, which is popularly known as “green diesel” or more formally “labelled fuel”. That fuel may only be used in commercial traffic.
“We have noticed that there is a great deal of ignorance about the regulations both among pub owners and private individuals, and there are many people who contact us with questions,” says Stina Ternhagen at the Coast Guard in a press release.
Filling up with the wrong fuel is not a crime. However, the Tax Agency can levy a penalty fee of SEK 10,000 if a boat owner or user of the boat has refueled with, or is using, the wrong fuel.
“It is good that the Coast Guard now has the opportunity to do these checks. It will give us a better picture of how the rules are being followed,” says Titti Campalto at the Swedish Tax Agency, in the press release.
The boat owner must also declare and pay the difference for the different fuels to the Swedish Tax Agency – currently it is approximately SEK 1.30 per litre.
However, removing the so-called marking substance (which, among other things, colors the fuel) in low-rated diesel is criminal.