Dáil Éireann Debate, Tuesday - 27 April 2010
136 Deputy Seymour Crawford asked the Minister for Finance if he will reconsider the situation regarding VAT refunds on wind turbines for use at farm or other levels in view of the fact that VAT is refunded on any other form of fixed equipment; his views on the fact that every encouragement should be given to those seeking such an alternative electricity provision; and if he will make a statement on the matter. [16538/10]
Amharc ar fhreagraFarmers who are not registered for VAT are not in the normal course entitled to credit for, or repayment of, VAT incurred by them on their business inputs. The Value-Added Tax (Refund of Tax) (No. 25) Order, 1993 provides for refunds to unregistered farmers for tax borne on the "construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly for the purposes of a farming business". However, while the installation of an alternative energy generator, such as a wind turbine, may be the construction of a structure, such a structure is not "designed for use solely or mainly for the purposes of a farming business". It is designed rather to generate electricity for wherever required. Consequently, the installation of a wind turbine does not come within the scope of the VAT refund order.
137 Deputy Michael McGrath asked the Minister for Finance the position regarding the application of the carbon tax to coal and commercial peat. [16540/10]
Amharc ar fhreagraI announced in the Budget that a carbon tax at a rate of €15 per tonne is being introduced on fossil fuels. The tax was applied to petrol and auto-diesel with effect from midnight, 9 December 2009; and will apply from 1 May 2010 to kerosene, marked gas oil (also known as "green diesel" or "agricultural diesel"), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order. This is to allow time for issues such as fuel poverty and the sourcing of coal of a lower environmental standard from Northern Ireland to be addressed.
A number of Government Departments, including the Department of Finance are exploring options for how best to offset the impact of the carbon tax on low-income households. With regard to the sourcing of coal from Northern Ireland, work has already commenced on this matter within the Department of Environment, Heritage and Local Government. The Department of Environment, my Department and the Revenue Commissioners have recently met with the Solid Fuel Trade Group in this regard.
