Dáil Éireann Debate, Wednesday - 30 April 2014
51. Deputy Michael McGrath asked the Minister for Finance the number of hauliers currently availing of the rebate scheme for auto diesel; the total amount of the rebate in 2013; his plans to streamline the process; and if he will make a statement on the matter. [18648/14]
Amharc ar fhreagraThe scheme, introduced by me in the Finance Act 2013, provides for a repayment of a part of the mineral oil tax paid on the purchases of auto-diesel for use in the course of business by qualifying road haulage and bus operators.
I am informed by the Revenue Commissioners that the numbers of haulage and bus operators availing of the scheme at 27th April is 1,426. The total number of claims received by Revenue at that date in respect of 2013 is 2,849 and the total value of these claims is €9,472,859. To date, 1,670 of these claims have been processed resulting in the repayment or offset of €6,218,409. The remaining €3,254,450 is being processed through the recently developed automated system and will be repaid/offset in the coming days.
The processes for the scheme are designed to address the risk of widespread abuse of the scheme and to ensure that claimants meet the scheme's qualifying conditions. These requirements are necessary to enable Revenue to manage repayments to qualifying transport operators while controlling the risk of fraud.
As part of the scheme's risk control framework, provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased. Purchases in bulk must be made from a licensed mineral oil trader, and delivered, in a quantity exceeding 2,000 litres, to a premises or place that is under the control of that qualifying road transport operator. Purchases by means of a fuel card, approved by Revenue for the purpose of the scheme, also qualify for repayment and there is no minimum requirement on purchases made in this way. A fuel card will be approved where Revenue is satisfied that the fuel card provider will supply it with the information required about purchases of auto-diesel by means of that card. Fuel cards are widely available and are usable across the road network and there are a number of fuel card providers who can supply suitable fuel cards to road transport operators and fuel retailers.
Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that the oil traders are required to make to Revenue. These returns form part of the supply chain controls introduced by Revenue to tackle the problem of illicit fuel, prior to the introduction of the diesel rebate scheme. The return provides an electronic record of the purchases, stock movements and sales of mineral oil each month by licensed mineral oil traders, by oil product type, including bulk sales to customers exceeding 2000 litres. This information can be used to verify electronically claims for bulk purchases under the diesel rebate scheme. A reduction in the minimum bulk purchase requirement for the diesel rebate scheme would require a corresponding reduction in the minimum threshold for purchases to be reported by mineral oil traders in their monthly returns, greatly increasing the number of transactions to be reported in these returns and the related administrative burden on the mineral oil traders.
I am satisfied that the requirements for the scheme achieve the right balance between making the scheme available to compliant transport operators and allowing Revenue to manage effectively the risk of fraud and I have no plans to change them.
