Key Documents
As part of the Streamlining excise administration for fuel and alcohol deregulation package, the government is consulting on a single average benchmark recovery rate for use by businesses to calculate and claim excise refunds on returned duty paid petroleum recovered through a Vapour Recovery Unit (VRU).
The establishment of a single rate is expected to result in a regulatory saving for businesses through the reduction in frequency of testing of VRUs and the resources businesses dedicate to claiming the refund relative to the amount of the refunds received.
The establishment of a single rate will remove the need for regular testing of VRU units for the purpose of claiming an excise refund on returned petroleum however, there may be other non-tax reasons why some testing may still be required.
This consultation paper covers the proposed average recovery rate and a proposed simplified formula in which it is employed to calculate the volume of returned duty paid petroleum recovered through a VRU. It will inform the drafting of legislation and explanatory materials to implement the measure.