Thomas Pringle
Question:330. Deputy Thomas Pringle asked the Minister for Finance the rate, in euros, of Government tax per litre of vehicle diesel and petrol; and if he will make a statement on the matter. [38045/22]
View answerTuesday, 12 July 2022
Questions (330)
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). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended) and this Act provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils 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”. It is important to note that both components of MOT are excise. Total MOT rates are what are considered in terms of compliance with ETD minimum rates.
In accordance with the Value-Added Tax Consolidation Act, 2010, VAT is chargeable on petrol and auto-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 auto-diesel. These reductions, along with further reductions that came into effect on 1 April, are legislated to run until 11 October this year. Currently the rate of MOT applying to auto-diesel is €405.38 per 1,000 litres and the MOT rate on petrol is €465.98.
The following table provides a breakdown of the current taxes and the NORA levy applying to petrol and auto-diesel, based on the average retail prices as per the EC Weekly Oil Bulletin of 4 July 2022.
|
Petrol |
% of retail price |
Diesel |
% of retail price |
|
|
€/litre |
€/litre |
|||
|
Pre-Tax & NORA Levy |
1.27 |
59% |
1.32 |
61% |
|
NORA Levy |
0.02 |
1% |
0.02 |
1% |
|
MOT non-carbon |
0.37 |
17% |
0.30 |
14% |
|
MOT carbon |
0.09 |
4% |
0.11 |
5% |
|
VAT (23%) |
0.40 |
19% |
0.40 |
19% |
|
Total Tax & NORA Levy |
0.89 |
41% |
0.82 |
39% |
|
Retail Price |
2.16 |
2.14 |