Dáil Éireann Debate, Tuesday - 23 July 2019
195. Deputy Thomas P. Broughan asked the Minister for Finance the estimated yield from the introduction of an aviation fuel tax of 1%, 3% and 5% respectively; the measures he is taking in this regard; and if he will make a statement on the matter. [32925/19]
View answer204. Deputy Thomas P. Broughan asked the Minister for Finance the estimated yield by increasing the tax on kerosene by 2%, 5% and 7%, respectively; the tax currently on kerosene used as a propellant; and if he will make a statement on the matter. [33141/19]
View answerI propose to take Questions Nos. 195 and 204 together.
I understand that the Deputy is in fact referring to excise on fuel used for commercial flights when he refers to aviation fuel tax.
Ireland’s excise duty treatment of fuel used for air navigation is based on European law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive. Under this Directive, Member States are obliged to exempt certain fuels used for commercial aviation purposes from excise duty. The scope of this exemption must include jet fuel (which is the most commonly used heavy oil in air navigation) and must encompass such fuel used for intra-Community and international air transport purposes. A Member State may waive this exemption where it has entered into a bilateral agreement with another Member State to tax fuel for intra-community flights. With regard to fuel for international transport, the scope for a Member State to take a unilateral approach to taxation is limited by international law and a range of bilateral and multilateral agreements that operate under 1944 Convention on International Civil Aviation (known as the Chicago Convention).
