Dáil Éireann Debate, Thursday - 14 February 2019
60. Deputy Robert Troy asked the Minister for Finance if he is satisfied with the performance of the diesel rebate scheme; if his attention has been drawn to the fact that many hauliers are dissatisfied with the design of the scheme; and if he will consider reforming same. [52197/18]
Amharc ar fhreagraThe Deputy will be aware that the Diesel Rebate Scheme has been in place since 2013. Under this scheme, Revenue will repay some of the mineral oil tax paid by a qualifying road transport operator on diesel purchases when the diesel is purchased within the State and used in the course of business transport activities in qualifying motor vehicles.
The rebate under the scheme applies for qualifying applicants when the price of diesel reaches a certain level. Currently, the quarterly diesel repayment rate is calculated using the national average purchase price. The Central Statistics Office provides this information. The repayment rate is calculated on a sliding scale basis. At present, there is no repayment when the price of diesel, including VAT, is at or below €1.23 per litre. The maximum amount repayable under the scheme at present is 7.5 cent per litre when the price including VAT, is €1.54 per litre or over.
Ireland is one of only eight Member States that operates such a scheme and I am aware that there are different views on its merits. My Department's Energy & Environmental Tax Strategy Paper 2017 noted that the Diesel Rebate Scheme is a subsidy, or tax expenditure, and an ESRI study showed that the Scheme has encouraged greater consumption of diesel and this has had negative environmental consequences over the length of the scheme. The ESRI estimated that the added impact on emissions of CO2, NOX and PM10 is significant, with over 100,000 extra tonnes of CO2 emitted. I am also aware that the haulage sector wish for the terms of the scheme to be enhanced.
I made no change to the operation of this scheme in Budget 2019. As with all taxation measures, the operation of the scheme is kept under review as part of the annual Budget process each year.
