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Carbon Tax Implementation

Dáil Éireann Debate, Tuesday - 3 December 2013

Tuesday, 3 December 2013

Questions (49)

Willie O'Dea

Question:

49. Deputy Willie O'Dea asked the Minister for Finance if he will consider deferring the next phase of the implementation of carbon tax, pending an evaluation of the net benefit of same to the State to date, and taking into consideration the effect of the growth of the black economy on regulated fuel businesses; when will all public suppliers of fuel to the domestic market come under a proper regulatory system; and if he will make a statement on the matter. [51615/13]

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Written answers

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 application of the solid fuel carbon tax on coal is heavily dependant on this regulatory regime. Suppliers who produce and supply solid fuels in contravention of these regulations are subject to investigation and prosecution by local authorities and other State Agencies charged with enforcing the regulations and preventing such supply.

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.

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