I am advised by the Revenue Commissioners, who have responsibility for the collection of solid fuel carbon tax, that turf extracted for domestic use as a solid fuel falls within the definition of “other peat” in section 77 of the Finance Act 2010, as amended. As such, it becomes liable to solid fuel carbon tax at a rate of €13.62 per tonne under the following conditions: when it is supplied as a solid fuel for the first time in the State.
No liability to solid fuel carbon tax arises where a person is extracting peat solely for his or her own domestic use. If a person is given or holds a right to a plot for the purpose of peat extraction, for example under turbary rights, lease, etc. a liability to solid fuel carbon tax does not arise on peat extracted by the person from that plot for their own use as a solid fuel, provided the peat is not supplied onward. A liability for carbon tax will arise if that extracted peat is sold onward in the State as a solid fuel. The person supplying that peat for the first time is accountable for and liable to pay the tax.