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Customs and Excise Protocols

Dáil Éireann Debate, Tuesday - 6 November 2012

Tuesday, 6 November 2012

Questions (199, 200)

Maureen O'Sullivan

Question:

199. Deputy Maureen O'Sullivan asked the Minister for Finance if he will ensure that marked gas oil MGO / green diesel is assigned a separate commodity code by the Revenue Commissioners to enable the Central Statistics Office and its users to separate imports of MGO from normal diesel products; and if he will make a statement on the matter. [47268/12]

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Maureen O'Sullivan

Question:

200. Deputy Maureen O'Sullivan asked the Minister for Finance if he will introduce an arrangement for users of marked gas oil MGO / green diesel to seek tax rebates annually rather than providing the fuel to the qualified consumer at a separate price, thus encouraging illegal diesel laundering which is increasingly costly to multiple enforcement agencies, damaging to the persons forced to work in these plants, damaging to the environment where the waste is dumped and the State Exchequer when sold; and if he will make a statement on the matter. [47269/12]

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Written answers

I propose to take Questions Nos. 199 and 200 together.

I have been informed by the Revenue Commissioners who have responsibility for mineral oil tax that they do assign a separate code to marked gas oil imports in their regular return of data to the Central Statistics Office. In addition, details of all hydrocarbon oils, including marked gas oil, retained for home use are included in Revenue’s annual statistical report, which is published on www.revenue.ie.

My understanding of the Deputy’s second question is that it 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 as part of the mineral oil tax paid by them in respect of fuel used for non-auto purposes. The issue of the introduction of a rebate scheme for users of marked gas oil has been addressed in previous parliamentary debates. A change to a system of this nature would involve the establishment of an expensive repayments system and would give rise to significant costs and place an administrative burden on oil traders, users and the Revenue Commissioners. It would also pose significant cash-flow costs for those currently using marked gas oil. Marked gas oil has a wide range of uses such as the propulsion of trains, the operation of agricultural, construction and industrial machinery, commercial sea-navigation (including fishing) and for commercial and home heating purposes. Any change in the existing system would therefore impact across a wide range of users.

Enforcement action is taken by the Revenue at all stages of the fuel supply chain, targeting those involved in laundering and those selling laundered fuel. Legislation introduced this year includes provision for the strengthening of licensing requirements for the sale of auto-fuel as well as the introduction of a new system of licensing for the sale of marked gas oil. There will also be a new requirement, from January 2013, for all fuel traders to make monthly returns to Revenue detailing their fuel transactions. This will be an important new source of information on the fuel supply chain and will assist in the identification of unusual or suspicious patterns of activity.

In addition, the Revenue Commissioners are working closely with Her Majesty’s Revenue and Customs in the UK on the development of a more effective fuel marker. An invitation to make submissions was issued jointly by both administrations in June. This has generated considerable interest across a number of countries and I am advised that it is expected that a significant number of proposals will be submitted by the closing date of 30 November.

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