Dáil Éireann Debate, Tuesday - 15 April 2014
163. Deputy Michael McGrath asked the Minister for Finance if his attention has been drawn to the fact that a number of businesses are precluded from the diesel rebate scheme because they purchase fuel in quantities of less than 2,000 litres due to a lack of on-site storage; and if he will make a statement on the matter. [17295/14]
View answerI introduced this scheme in the Finance Act 2013 in order to provide for a repayment to qualifying road haulage and bus operators of a part of the mineral oil tax paid on their purchases of auto-diesel for use in the course of business. In order to address the risk of widespread abuse of the scheme, provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased. Purchases in bulk must be made from a licensed mineral oil trader, and delivered, in a quantity exceeding 2,000 litres, to a premises or place that is under the control of that qualifying road transport operator. Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that the oil traders are required to make to Revenue.
Purchases by means of a fuel card, approved by Revenue for that purpose, also qualify for repayment and there is no minimum requirement on purchases made in this way. A fuel card will be approved where Revenue is satisfied that the fuel card provider will supply it with the information required about purchases of auto-diesel by means of that card. The purchasing arrangements under the scheme are necessary to enable Revenue to manage repayments to qualifying operators while controlling the risk of fraud. Bulk purchases in quantities below the minimum requirement would not be adequate for this purpose and would not, in any case, comply with the statutory provisions governing the scheme. As outlined, the scheme is not solely confined to the minimum purchase requirement of 2,000 litres. Purchases by a qualifying coach operator by means of a fuel card approved by Revenue are not subject to a minimum purchase requirement and allow the coach operator concerned to avoid fuel storage while claiming under the scheme, thereby alleviating the security risks identified. Fuel cards are widely available and are usable across the road network and there are a number of fuel card providers who can supply suitable fuel cards to road transport operators and fuel retailers. I understand that the Federation of Transport Operators has made representations to Revenue and Revenue will communicate directly with the Federation on these matters shortly.
