Dáil Éireann Debate, Wednesday - 20 November 2013
59. Deputy Ciarán Lynch asked the Minister for Finance if he will consider the concerns raised by a person (details supplied) in County Limerick regarding the issue of carbon taxation; and if he will make a statement on the matter. [49727/13]
View answerThe Revenue Commissioners advise me that the application of solid fuel carbon tax (SFCT) is heavily dependant on the regulatory regime for coal put in place by the Department of the Environment, Community and Local Government. The regulatory regime established higher standards for coal supplied in the State compared with Northern Ireland, and provides for enforcement of those standards. Suppliers who produce and supply solid fuels unlawfully are subject to investigation and prosecution by local authorities and other State agencies charged with enforcing environmental regulations and with preventing such supply.
SFCT commenced in May, so it is probably too early, taking account of seasonal factors, to assess the effectiveness of the regulatory framework put in place to enable its implementation. However, my officials will continue to monitor the SFCT on an ongoing basis.
In terms of the scale of the shadow economy in the fuel sector, I am advised by the Revenue Commissioners that while there is no reliable estimate of its size, they are very aware of the risks, particularly given the price differentials and the different levels of taxation with Northern Ireland. I am also advised by the Commissioners that solid fuel traders are subject to the full range of compliance interventions and enforcement provisions applied by Revenue for self-assessed taxes. Suppliers who suspect, or have evidence, that illegal and/or untaxed solid fuel is being sold in their area should report this to their Local Authority and to Revenue, respectively, either directly or through their representative associations. Reports of this nature have been received recently by Revenue and, as with all such reports, are being treated confidentially and will be risk assessed and where appropriate investigated for unpaid tax liabilities.
