Under the Finance Act 2010, solid fuel carbon tax is charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. The tax is an excise duty and, as with most other excise duties, the liability arises at the earliest point in the supply chain following importation or manufacture in the State. Suppliers, whether importers or manufacturers, become liable for the tax at the time they make the first supply of the solid fuel to traders, or directly to the public, and are obliged to make a return and pay the solid fuel carbon tax to Revenue within one month of the end of each two-month accounting period. This arrangement reduces the number of traders obliged to make returns and accordingly, limits the overall administrative burden of the tax on the fuel trade and on Revenue. Northern Ireland based suppliers of solid fuels who are selling direct to households in the State, are obliged to register as suppliers with Revenue for solid fuel carbon tax purposes and comply with the same regulatory requirements as suppliers based in the State. Where a Northern Ireland based supplier sells solid fuel to a supplier based in the State, the State-based supplier is liable for the tax when he/she supplies the solid fuel to his/her customers.
All supplies of solid fuels must comply with the Air Pollution Act, (Marketing, Sale, Distribution and Burning of Specified Fuels) Regulations 2012 (S.I. No. 326 of 2012), made by the Minister for the Environment, Community and Local Government. These regulations specify the standards for coal placed on the market and the obligations on suppliers in relation to the distribution and sale of coal in the State, including registration with the Environmental Protection Agency and compliance with fuel quality and packaging standards. These Regulations are enforced by the Local Authorities.
I am satisfied that the present arrangements for collecting the solid fuel carbon tax are reasonable and I have no plans to change them.
