Dáil Éireann Debate, Tuesday - 31 January 2012
184 Deputy Derek Keating asked the Minister for Finance if he will consider the proposals made recently that the two-colour diesel fuel system be abolished and that a rebate system for tax-compliant hauliers on diesel fuel be introduced to replace the current practice; and if he will make a statement on the matter. [5517/12]
Amharc ar fhreagraThe Deputy's question envisages a movement away from the current system of marking of oil to which a reduced rate of tax applies to one in which certain users would be given refunds of part of the mineral oil tax paid by them in respect of fuel used for non-auto purposes. This would, however, involve the establishment of an extensive repayments system, which would give rise to a significant administrative burden and costs for oil traders, users and Revenue, as well as posing significant cash-flow costs for those who currently use marked oil. Moreover, repayment systems are vulnerable to abuse and would be likely to be targeted by criminal elements such as those currently involved in oil laundering. It has to be borne in mind also that, even if there were a move to a repayments system, those involved would still have the possibility of sourcing UK marked oil for laundering. A move away from marking could only be considered, therefore, if the UK were to do likewise. For those reasons, it is not clear that a repayment system would be less susceptible to fraud. The intention, therefore, is to ensure that controls relating to the sale and distribution of oils, and enforcement action for combating laundering, are as effective as possible.
