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Tax Code

Dáil Éireann Debate, Wednesday - 10 March 2021

Wednesday, 10 March 2021

Ceisteanna (275, 280, 307)

Niamh Smyth

Ceist:

275. Deputy Niamh Smyth asked the Minister for Finance if the 20% additional tax and duty being placed on raw materials in the production of lubricants which are not the end product itself will be examined (details supplied); and if he will make a statement on the matter. [12670/21]

Amharc ar fhreagra

Niamh Smyth

Ceist:

280. Deputy Niamh Smyth asked the Minister for Finance if he will address the issues raised in correspondence (details supplied); and if he will make a statement on the matter. [12738/21]

Amharc ar fhreagra

Pauline Tully

Ceist:

307. Deputy Pauline Tully asked the Minister for Finance the reason mineral based lubricants derived from crude oil which are being imported from the UK are subject to mineral oils taxes and carbon duties as if they were fuels or propellants; if he will introduce an immediate derogation from these taxes for traders purchasing lubricants; if so, if this derogation can be applied immediately given this is increasing raw material costs for companies such as a company (details supplied) by 20% and giving its competitors based in Northern Ireland a considerable competitive advantage which could put them out of business; and if he will make a statement on the matter. [13473/21]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 275, 280 and 307 together.

The Deputy will be aware that from 1 January 2021, the UK is a 3rd country for the purposes of trade and movement of goods. This means that a range of customs formalities apply to goods moving to, from or through the United Kingdom, excluding Northern Ireland. Imports of goods from Great Britain must be declared to customs and are liable to customs duty, excise duties and VAT at import, where applicable.

Mineral Oil Tax (MOT) is an excise duty on mineral oils used as fuel in motor vehicles or for heating. There has been no change in the scope of products that are subject to MOT since 1 January 2021. The rate of MOT is composed of a carbon and non-carbon component. The carbon component is also referred to as carbon tax.

I am advised by Revenue that if the lubricants mentioned in the correspondence provided by the Deputy are for purposes other than fuel for motor vehicles or heating, MOT does not apply. As the MOT becomes payable when the Customs declaration is lodged, it is important that the product is correctly classified and that where applicable, the necessary excise and carbon tax exemption codes are entered on the Customs declaration to ensure that excise related duties are not applied to products that are not fuel for motor vehicles or for heating.

I am advised by Revenue that in relation to the business concerned, it is engaging with the business in relation to the classification of products and the procedures for applying excise and carbon tax exemption codes for the products where applicable and that engagement is ongoing.

Further information on the Mineral Oil Carbon Charge is available on Revenue’s website at: https://www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/carbon-tax/index.aspx.

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