Dáil Éireann Debate, Tuesday - 15 December 2009
115 Deputy Fergus O’Dowd asked the Minister for Finance if a rebate of carbon tax on public transport providers has been considered; the possible costs involved; if this would be deemed illegal for public service providers in view of the abolition of the excise duty rebate last year due to a European Union competition directive; and if he will make a statement on the matter. [47155/09]
View answerI announced in the Budget that exemptions from the carbon tax will apply only to participants in the EU Emissions Trading Scheme (ETS) in respect of fuels covered. There is scope under the Energy Tax Directive to apply a lower rate of excise duty on auto-diesel in respect of certain local public passenger transport services and certain other commercial users, once the EU minimum rate is observed. However, the introduction of any such preferential treatment would require an extensive rebate system. It is estimated that a relief from carbon tax for local public passenger transport services using the same criteria as the previous excise duty rebate would cost in the region of €5m per annum. However, using the same criteria would not be possible under EU law and any relief would need to be wider in scope, but would also exclude some of those companies that had benefited from the previous excise relief scheme. It is estimated that a general carbon tax relief for commercial users of auto-diesel would cost the Exchequer approximately €70m per annum.
