Dáil Éireann Debate, Thursday - 19 July 2012
99 Deputy Robert Troy asked the Minister for Finance if he has any plans to equalise the duty rates between agricultural fuels and motor fuels and to introduce a reclaim system for agricultural fuel users; and if he will make a statement on the matter. [36212/12]
View answerIt is assumed that the Deputy's question envisages a movement away from the current system of marking of oil to which a reduced rate of tax applies to one in which certain users would be given refunds of part of the mineral oil tax paid by them in respect of fuel used for non-auto purposes. A change of this kind would, however, involve the establishment of an extensive repayments system, which would give rise to a significant administrative burden and costs for oil traders, users and the Revenue Commissioners, as well as posing significant cash-flow costs for those who currently use marked oil. Moreover, repayment systems are vulnerable to abuse and would be likely to be targeted by criminal elements such as those currently involved in oil laundering.
For those reasons, it is not clear that a repayment system would offer greater security against fraud than the current arrangements There are no plans, therefore to move to a reclaim system as suggested by the Deputy. The intention is to ensure that controls relating to the sale and distribution of oils, and enforcement action for combating laundering, are as effective as possible, and significant steps are being taken to enhance the supervision of the oils supply chain.
