The States of Jersey has announced that fuel duty for marine pleasure craft will not be introduced into next year’s Budget. The announcement follows a public consultation and lobbying from local and national bodies.

The island’s government considered taxing pleasure craft fuel to recoup a reported £666,000 that its duty-free status granted in tax relief last year. The proposed changes – which would have meant marine petrol prices rising from 61p to £1 per litre, and diesel from 53p to over 90p per litre – had local boat owners up in arms.

Chairman of St Helier Boat Association Mike Stevens said that the island would suffer hugely if the changes went ahead: ‘if fuel prices rise, the island will effectively be closed for business. People will not come here, fill up, stay in our marinas or eat in our restaurants… the knock-on effect will be colossal.’

Results of a Customs and Excise consultation on the taxation carried out earlier this summer have now resulted in the proposed tax being scrapped. Jersey States Senator Terry Le Sueur acknowledged: ‘It is clear that there are wider economic implications when considering the potential impact of introducing duty on marine fuel.’