Seán Sherlock
Question:101. Deputy Sean Sherlock asked the Minister for Finance if he will address an issue (details supplied) regarding the rebate diesel scheme. [28396/21]
View answerWednesday, 26 May 2021
Questions (101)
Written answers
The Diesel Rebate Scheme (DRS) is provided for in Section 99A of the Finance Act 1999. Under the DRS, qualifying road transport operators may qualify for a repayment of part of the mineral oil tax paid on auto-diesel purchased in the State for use in the course of their business. Applications by qualifying operators for repayments are made in respect of a quarterly repayment period.
I am advised by Revenue that the DRS quarterly rebate rate is calculated using an estimate of the quarterly national average purchase price of diesel. This estimate is based on data provided by the Central Statistics Office (CSO). CSO figures for the first two months of each quarter are used to arrive at the quarterly national average purchase price of diesel. The calculation of DRS quarterly rebate rates is carried out in accordance with formulae set out in legislation –
(a) Where the estimate of the quarterly average purchase price of diesel (excluding VAT) is less than or equal to €1,070 per 1,000 litres the rebate rate is calculated as follows:
Amount to be repaid per 1,000 litres = (Quarterly Average Price per 1,000 litres – 1,000) x 0.3
(b) Where the estimate of the quarterly average purchase price of diesel excluding VAT is greater than €1,070 per 1,000 litres the rebate rate is calculated as follows:
Amount to be repaid per 1,000 litres = 21 + [(Quarterly Average Price per 1,000 litres – 1,070) x 0.6]
The rebate amount is capped at 7.5 cent per litre, which arises when the average price of diesel (excluding VAT) is €1.16 or more per litre.
The Deputy is asking about the rebate rates for Quarter 4 2020 and Quarter 1 2021. The CSO figures for the monthly national average price of diesel (including VAT) for October 2020 to March 2021 are listed below.
|
Month |
National Average Price €/litre |
|
October 2020 |
1.244 |
|
November 2020 |
1.253 |
|
December 2020 |
1.181 |
|
January 2021 |
1.214 |
|
February 2021 |
1.251 |
|
March 2021 |
1.332 |
The average price used by Revenue for Q4 2020 is based on the CSO figures for October and November. The average price used by Revenue for Q1 2021 is based on the CSO figures for January and February. Therefore, it is correct that the rebate rate for the first quarter of this year is lower than that for the last quarter for 2020.
I am further advised by Revenue that, when calculating DRS rebate rates for the last quarter of 2020 the temporary reduction in the VAT rate (from 23% to 21%) was not taken into account. The corrected rebate rate of €0.01 per litre for Q4 2020 will now be applied to all valid claims from qualifying operators for that period. Also, claims for Q1 2021 are currently being processed, and the correct DRS rate for Q1 2021 of €0.006 will be applied for rebates on all valid claims for that period.