Dáil Éireann Debate, Wednesday - 23 May 2012
57 Deputy Noel Harrington asked the Minister for Finance if he will extend the rebate on carbon tax element of fuel costs for the fishing sector to the agricultural and transport sectors; and if he will make a statement on the matter. [25657/12]
Amharc ar fhreagraAs required under the Directive 2003/96/EC, a full relief from Mineral Oil Tax, including the carbon charge component of the tax, applies to oil used for sea navigation, including sea fishing. In the Finance Act 2012, I introduced a deduction in respect of the carbon charge component of the Mineral Oil Tax on marked diesel used by farmers in the course of their farming trade. Under this measure, farmers are allowed a deduction in computing their farming profits or losses, for the amount of additional carbon charge that they incur on purchases of marked diesel, following the increase in the rate of tax on certain fuels from 1 May 2012. This new deduction is in addition to the existing deduction for Mineral Oil Tax included in the cost of marked diesel used in the course of the farming trade. The Deputy may be aware that a working group was set up between officials of my Department, the IRHA and members of the Oireachtas. This working group is discussing a number of issues of concern to the haulage industry. Among the issues examined by the group is an essential user's rebate system. I should point out that a fuel rebate system, as sought by the IRHA, could not under EU law be restricted to Irish licensed hauliers but would have to be extended to all vehicles intended exclusively for the carriage of goods by road with a maximum permissible gross laden weight of not less than 7.5 tonnes. In addition, the rebate would have to include the carriage of passengers by a motor vehicle of category M2 or category M3 as defined in Council Directive 70/156/EEC .
