Dáil Éireann Debate, Tuesday - 15 October 2019
155. Deputy Micheál Martin asked the Minister for Finance if he or his officials have been in discussion with the EU regarding the cost of airline fuel; if it will be increased.; and if he will make a statement on the matter. [42254/19]
View answerI am presuming that the Deputy is referring to the taxation of aviation fuel rather than its overall cost.
The Energy Tax Directive (2003/96/EC) currently mandatorily exempts the application of tax on aviation fuel used in intra EU and international flights, save where bilateral arrangements are entered into between Member States.
The European Commission recently published an evaluation of the Energy Tax Directive and has indicated that it will follow this up with an impact assessment of the Directive. As the Deputy will be aware the European Commission has the legislative right of initiative.
I am aware that there is an increasing focus on the current tax exemptions for aviation fuels in the context of broader efforts to address climate change as well as to level the playing field with other forms of transport fuels which are subject to taxes.
Neither I nor my officials have been in discussion with the European Commission on the matter of aviation fuel taxation. I recognise the environmental and fiscal merits of the case being made for the application of aviation taxes and Ireland will engage constructively in any future negotiations on this issue.
