Dáil Éireann Debate, Tuesday - 7 December 2021
211. Deputy Niamh Smyth asked the Minister for Finance if his Department has met with haulage groups regarding an issue (details supplied); the steps that can be taken to assist the sector; and if he will make a statement on the matter. [60407/21]
View answerThe final retail price of fuel is determined by a number of factors which include the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts as well as individual retail pricing policies.
There are a number of measures in place to support hauliers. This includes the Diesel Rebate Scheme (DRS) for hauliers and bus operators, which has been continuously in operation since 1 July 2013.
The DRS is operated by the Revenue Commissioners, who will repay some of the mineral oil tax paid by a qualifying road transport operator when the diesel is:
- purchased by the business within the state
- used in the course of business transport activities; and
- used in qualifying motor vehicles.
To qualify for inclusion in the DRS, road transport operators must hold an appropriate road transport licence. This licence must be active in the claim period.
The Scheme operates on a sliding scale basis, whereby the rebate kicks when the retail price of diesel exceeds €1.00 VAT exclusive and the repayment amount increases gradually as the retail price increases up to a maximum repayment amount of 7.5 cents per litre. I provided for a significant enhancement to the scheme in Budget 2020 whereby the marginal rate of compensation was doubled at prices over €1.07 VAT exclusive. This enhancement has been maintained to date in light of the current challenges facing sectors of the economy.
Further information in relation to the operation of the scheme including qualifying criteria, guidelines on the application process and quarterly repayment rates are available on the website of the Office of the Revenue Commissioners at the link below:
www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/diesel-rebate-scheme/index.aspx
As the Deputy will be aware, VAT registered businesses are also eligible to claim a refund on the VAT paid for diesel used in the course of business activities.
Finally, the Government has an ongoing engagement with the sector. In this context my colleagues Ministers Ryan and Naughton are due to meet with members of the Irish Road Haulage Association later this week.
