Peadar Tóibín
Question:533. Deputy Peadar Tóibín asked the Minister for Finance the amount of tax or excise duties on fuel broken down by tax or excise duty and percentage in tabular form. [21226/22]
View answerTuesday, 26 April 2022
Questions (533)
Written answers
Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). ETD provisions on mineral oils are transposed into national law in Finance Act 1999 which provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol and diesel, that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”.
In accordance with the Value-Added Tax Consolidation Act, 2010, VAT is chargeable on petrol and diesel at the standard rate, currently 23%, on the total amount which the supplier is entitled to receive including taxes, duties, levies and charges but excluding the VAT itself. A levy is also charged on petrol and diesel to cover the costs related to maintaining security of oil supplies. While both MOT and VAT are administered by Revenue the levy is administered by, and paid directly to, the National Oil Reserves Agency (NORA).
The Deputy will be aware that in March this year, in response to the current fuel crisis, I introduced significant reductions in the MOT rates for petrol and diesel. I will shortly bring forward legislation to extend these rate cuts until 11 October. Further MOT cuts that came into effect on 1 April will also run to 11 October this year.
The following table provides a breakdown of the current taxes and the NORA levy applying to petrol and diesel, based on the average retail prices as per the EC Weekly Oil Bulletin of 18 April 2022.
|
|
Petrol €/litre |
% of retail price |
Diesel €/litre |
% of retail price |
|
Pre-Tax & Levy |
1.00 |
55% |
1.12 |
59% |
|
Nora Levy |
0.02 |
1% |
0.02 |
1% |
|
MOT non-carbon |
0.37 |
20% |
0.30 |
16% |
|
MOT carbon |
0.10 |
5% |
0.11 |
6% |
|
VAT (23%) |
0.34 |
19% |
0.36 |
19% |
|
Total Tax & Levy |
0.83 |
45% |
0.79 |
41% |
|
Retail Price |
1.83 |
|
1.91 |
|