Dáil Éireann debate -
Wednesday, 7 May 1941

Vol. 83 No. 1

Financial Resolutions. - Resolution No. 4—Customs and Excise—Hydrocarbon Oil.

Mr. O Ceallaigh

I move:—

(1) That the duty of customs imposed by Section 21 of the Finance Act, 1935 (No. 28 of 1935), shall, in respect of hydrocarbon oil chargeable with that duty which is imported on or after the 8th day of May, 1941, be charged, levied, and paid at the rate of one shilling and three pence the gallon in lieu of the rate now chargeable by virtue of sub-section (1) of Section 11 of the Finance Act, 1939 (No. 18 of 1939).

(2) That the rebate allowable under sub-section (2) of the said Section 21 of the Finance Act, 1935, shall in respect of hydrocarbon oil on which such rebate is allowable and which is imported on or after the 8th day of May, 1941, be allowed at the rate of one shilling and three pence the gallon in lieu of the rate now allowable by virtue of sub-section (2) of the said Section 11 of the Finance Act, 1939.

(3) That the duty of excise imposed by the said Section 21 of the Finance Act, 1935, shall, in respect of hydrocarbon oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 8th day of May, 1941, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied, and paid at the rate of one shilling and one penny the gallon in lieu of the rate now chargeable by virtue of sub-section (3) of the said Section 11 of the Finance Act, 1939.

(4) That the rebate allowable under sub-section (4) of the said Section 21 of the Finance Act, 1935, shall, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in the next preceding paragraph of this Resolution was paid at the rate of one shilling and one penny the gallon, be allowed at the rate of one shilling and one penny the gallon in lieu of the rate now allowable by virtue of sub-section (4) of the said Section 11 of the Finance Act, 1939.

(5) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Dr. O'Higgins

I think that this particular tax, as things are at the moment, is a particularly unjust tax. As far as we are aware, at the present moment the bulk of the petrol consumed in the country is consumed by people for purposes other than pleasure—lorrymen, taximen and others whose means of livelihood depend on driving a car, a van or a lorry. This particular five pence a gallon, while it may sound small putting it that way, is an extra income-tax of from 5/- a week to £1 a week on a small number of people. Unless consideration is given to some arrangement such as was made in this country during the Great War when petrol was fairly heavily taxed, whereby a special rebate of a proportion of the tax was allowed to those who used petrol as a means of getting their livelihood, I think this particular tax should be opposed. Under war conditions as far as petrol is used by anyone for pleasure or recreational purposes, I would not object if the tax was considerably higher than the tax outlined here, but, where comparatively humble folk have got to earn a livelihood by a petrol-driven vehicle, I think this tax is, to say the least of it, an ill-advised and brutal tax.

Mr. Norton

The Minister said in his Budget statement that he hopes to be able to get £374,000 additional revenue in respect of taxation on mineral hydrocarbon oils. I wonder if the Minister can tell us at this stage, because it would give us a better perspective of the position, whether we may assume that petrol will be available for consumption by motor users during the remainder of this year on a more generous scale than was available during the past few months, or whether it is hoped, for instance to stabilise the issue of petrol rations on the level of the supplies which were issued for the current month. If we could have some information as to the availability of petrol supplies in relation to this tax, it would help people to understand the position more clearly.

Mr. Dockrell

Arising out of the remarks which have been made here, I have tried to do a sum in arithmetic, and it appears that the Minister was expecting to get in 12,000,000 to 14,000,000 gallons of petrol and have that available for distribution. I think that is the calculation. I do not know if the Minister can confirm that. It would look as if that were the amount which is expected to be available. Can the Minister confirm or deny that?

Mr. O Ceallaigh

I do not object to the remarks made by Deputy O'Higgins with regard to this additional imposition on petrol. It is a heavy tax, a very heavy tax. But if I do not put it on petrol, where am I going to get it? It has to be got somewhere. A tax on petrol is as just—or much more just—as a tax on tea or sugar and other things which I could suggest. There are Deputies opposite, and Deputies on my side of the House too, who would make strong protests against a variety of other taxes which might be suggested as a substitute for the tax on petrol. The money has to be got. The petrol tax will hit a certain number of people, admittedly, and will hit some of them sorely, perhaps, but it cannot be helped in the present circumstances.

Dr. O'Higgins

It is a tax on one in every 1,000 of the population.

Mr. O Ceallaigh

They are much less in number, the people who pay income-tax, and we are putting a heavy blister on them. The number who pay corporation profits tax are still less.

Dr. O'Higgins

Maybe the same person is caught twice?

Mr. O Ceallaigh

It may happen that there will be a good deal of overlapping. With regard to the matters raised by Deputy Norton and Deputy Dockrell, as I said in my statement, I have to make certain assumptions, and amongst them is the assumption that we will get in petrol. I assume for my purposes that we will get in 16,000,000 gallons. That is my assumption, but I cannot guarantee that, and nobody could; nobody in this House can say that we will get that quantity in.

Mr. Norton

Over what period does the Minister hope to get the petrol in?

Mr. O Ceallaigh

Over the financial year. That is the assumption on which I based my figures. I hope we will get that quantity, at least, but further than that I cannot go.

Mr. Dockrell

That would represent two-fifths of the normal importation?

Mr. O Ceallaigh

Normally we imported about 43,000,000 gallons.

Dr. O'Higgins

Does the Minister reject the idea of any concession by way of rebate?

Mr. O Ceallaigh

I do. I should like to mention that this is not the Resolution covering the subject Deputy O'Higgins has in mind. His remarks would apply more properly to the next one.

Question put and declared carried.