Dáil Éireann Debate, Thursday - 15 July 2021
59. Deputy Peadar Tóibín asked the Minister for Agriculture, Food and the Marine if his Department has conducted a study on the impact of fuel prices or taxes on the agricultural sector; and if he will make a statement on the matter. [38167/21]
Amharc ar fhreagraNo specific study of fuel prices has been conducted by the Department of Agriculture, Food and the Marine. However, the Department does monitor costs relating to the agriculture sector on an ongoing basis. Each month the Central Statistics Office (CSO) release the Wholesale Price Index, the Consumer Price Index and Agricultural Price Indices, which track changes in input costs and output returns in agriculture, including fuel and energy costs. The CSO also issue annual data for the agriculture sector in their release "Output, Input and Income in Agriculture", which also includes data on energy and lubricants used in agriculture.
In relation to fuel tax, I am advised by my colleague the Minister for Finance that the main agriculture exposure to excise duty comes from the fuel inputs primarily through the use of Marked Gas Oil, which is currently subject to a rate of mineral oil tax (MOT) of 13.8 cent per litre and that this compares favourably to the current full rate of MOT for auto diesel used as a propellant of 51.5 cent per litre.
Farmers and agricultural contractors, who incur expenses in relation to farm diesel in the course of their trade of agricultural contracting, may claim an income tax or corporation tax deduction for those expenses, including any carbon tax charged in respect of the diesel. It is also important to note that when the carbon tax was increased in Budget 2012, provision was made for a double income tax relief for farmers to compensate for the increase. It is available to individuals and companies that carry on a trade of farming and are entitled to claim an income tax or corporation tax deduction in respect of farm diesel.
