Solid fuel carbon tax will be charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat.
I am advised by the Revenue Commissioners that the Air Pollution Act, 1987 (Marketing, Sale and Distribution of Fuels)(Amendment) Regulations 2011 (S.I. No. 270 of 2011), made by the Minister for the Environment, Heritage and Local Government, specifies the standards for coal placed on the market and extends the regulatory framework in relation to the distribution and sale of coal in the State. Under the Regulations, all coal suppliers are obliged to register with the Environmental Protection Agency and comply with sulphur content and packaging standards. In particular, the sulphur content of coal that may be sold in the State, which is not more than 0.7% sulphur by weight, is lower than that in Northern Ireland and therefore coal supplied to Northern Ireland standards for sale on that market may not be sold in the State. Compliance with the Regulations will be enforced by the Local Authorities.
The Revenue Commissioners, who are responsible for the collection of carbon tax on solid fuels, also advise me that on commencement of the carbon tax provisions under the Finance Act 2010, any Northern Ireland-based wholesaler of solid fuels selling into the market in Ireland will be obliged to register as a supplier and comply with the same regulatory requirements as wholesalers based in the State. Such suppliers will be obliged to make returns on solid fuels supplied in the State in the accounting period concerned and pay the amount of carbon tax due in respect of that supply. Therefore it is not my intention to defer the second phase of the carbon tax which is due for implementation in May 2014.
