Excise Duties

Tuesday, 23 July 2019

Questions (219)

Michael McGrath

Question:

219. Deputy Michael McGrath asked the Minister for Finance the excise provisions and rates that apply to aviation fuel, fuel used for agricultural purposes, fuel used by haulage companies and fuel used by private motorists in tabular form; the estimated revenue yield from each in 2018; and if he will make a statement on the matter. [33493/19]

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Written answers

Minister for Finance

Finance Act 1999 provides for a duty of excise, known as Mineral Oil Tax (MOT), to be applied to all mineral oil released for consumption (i.e. for use as a fuel) in the State or released for consumption in another Member State and brought into the State. It also provides for MOT to be applied to vehicle gas supplied to a vehicle gas dispenser.

MOT is composed of a carbon and a non-carbon component. The carbon component is based on the amount of carbon dioxide emitted from the fuel when it is combusted. The total applicable rate of MOT depends on the fuel type and the purpose for which the fuel is used. The current rates of MOT applying to fuels used for air navigation, in road vehicles and in agricultural tractors, as set out in Schedule 2 of Finance Act 1999, are given in the following table. The table also provides a breakdown of MOT rates into their carbon and non-carbon components.

Fuel type and use	Non-carbon component “A” €	Carbon component “B” €	Mineral Oil Tax per 1,000 litres “A” + “B” €
Light oil (petrol) used to propel a road vehicle	541.84	45.87	587.71
Heavy oil (auto diesel) used to propel a road vehicle	425.72	53.30	479.02
Heavy oil (marked gas oil) used to propel an agricultural tractor	47.36	54.92	102.28
Heavy oil (jet fuel/kerosene) used for air navigation	425.72	53.30	479.02
Light oil (aviation gasoline) used for air navigation	541.84	45.87	587.71
Liquified petroleum gas (auto LPG) used to propel a road vehicle	63.59	32.86	96.45
Liquefied petroleum gas (LPG) used to propel an agricultural tractor	0	32.86	32.86
Vehicle gas used to propel a road vehicle	5.66	3.70	9.36 per mwh

MOT legislation provides for a full relief from taxation for heavy oil (jet fuel/kerosene) used for commercial air navigation so there is no MOT yield from heavy oil used in the commercial air navigation sector. Heavy oil is the predominant fuel type used for commercial air navigation. MOT legislation also provides for a partial relief from taxation for light oil (aviation gasoline) used for commercial air navigation. This partial relief is set at €232.27 per 1,000 litres giving an effective MOT rate of €355.44 for light oil used for commercial air navigation. I am advised by the Revenue Commissioners that the total excise yield in 2018 for light oil used for commercial air navigation was €0.44m. However, as already stated, the majority of fuel used in the commercial air navigation sector is heavy oil which is exempted from taxation.

There are no differentiated MOT rates for fuels supplied to commercial road haulage operators or private motorists. However certain road transport operators may qualify, under the Diesel Rebate Scheme, for a partial repayment of MOT for fuel used in the course of business transport activities in qualifying motor vehicles. The rebate under the scheme applies for qualifying applicants when the price of diesel reaches a certain level. Currently, the quarterly diesel repayment rate is calculated using the national average purchase price. The Central Statistics Office provides this information. The repayment rate is calculated on a sliding scale basis. At present, there is no repayment when the price of diesel, including VAT, is at or below €1.23 per litre. The maximum amount repayable under the scheme is 7.5 cent per litre when the price including VAT, is €1.54 per litre or over. I am advised by the Revenue Commissioners that the total amount repaid under the scheme in 2018 was €2.4m.

I am advised by the Revenue Commissioners that MOT receipts from fuel oil categories in 2018 are as follows:

2018	Non-Carbon €m	Carbon €m	Total MOT €m

Petrol	597.58	48.09	645.67
Auto diesel	1,520.74	182.82	1,703.56
Marked Gas Oil*	43.57	54.31	97.88
Auto LPG	0.20	0.09	0.29
LPG for other uses*	-	10.24	10.24
Aviation gasoline	0.44	0.04	0.48
Total	2,162.53	295.59	2,458.12

* The figures above provide the total yield for MGO and for LPG for all reduced rate purposes. These include fuel used for agricultural purposes and for other qualifying purposes, e.g. the operation of industrial and commercial machinery and for commercial and home heating. It is not possible to specifically identify the MOT yield resulting from agricultural usage.