Dáil Éireann Debate, Thursday - 13 April 2017
69. Deputy Josepha Madigan asked the Minister for Finance the subsidies available for those using diesel; and his plans to alter these schemes in view of moves in other jurisdictions to move away from diesel. [18856/17]
Amharc ar fhreagraIn Ireland, diesel used for certain social or commercial reasons can attract a lower rate of tax. This lower rate of tax could be considered a subsidy. Currently, subsidies are limited to Marked Gas Oil, a Disabled Drivers and Passengers Fuel Grant and the Fuel Rebate Scheme. A differential in the rate of excise applied to petrol and that applied to diesel exists, however, this is historic in nature and is due to diesel being the traditional fuel of business.
Marked Gas Oil incurs a reduced excise rate due to its limited uses such as in agriculture, commercial fishing, and home heating. The Disabled Drivers and Passengers Fuel Grant provides financial assistance to qualifying disabled road users to ensure their continued mobility and independence.
A relief on mineral oil tax paid on auto-diesel purchased within the State by qualifying passenger transport operators, known as the diesel rebate scheme, was introduced in July 2013. The repayment amount is calculated by reference to a sliding scale based on the average price at which auto-diesel is available for purchase during a repayment period. The maximum relief is 7.5 cents per litre for fuel purchased at €1.54 or over and no relief applies where the purchase price is €1.23 or less. Full details on the requirements for qualifying road transport operators in relation to repayments under the scheme are available on Revenue's website at www.revenue.ie/en/tax/excise/diesel-rebate-scheme.
The reduced rate of excise duty on diesel, when compared with petrol, is due to diesel being the traditional fuel of business. Larger transport vehicles such as heavy goods vehicles, up until recently, had no viable alternative and therefore enjoyed a reduced rate.
The excise rates are examined each year as part of the Budgetary process.
