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Tax Reliefs

Dáil Éireann Debate, Wednesday - 9 March 2022

Wednesday, 9 March 2022

Ceisteanna (63)

Matt Carthy

Ceist:

63. Deputy Matt Carthy asked the Minister for Finance if the Revenue Commissioners’ relief for increase in carbon tax on farm diesel part 23-01-36 reflects the increase to the carbon tax applied to the mineral oil tax carbon component from 1 May 2021 onwards; if more up to-date guidance is available; the best source of such information for farmers seeking to calculate the available rebate in the period following the increase; and if he will make a statement on the matter. [13175/22]

Amharc ar fhreagra

Freagraí scríofa

Section 664A Taxes Consolidation Act 1997 provides additional relief for farmers in respect of an increase in the carbon tax on farm diesel.  In addition to being able to claim a tax deduction for expenditure incurred on farm diesel (including any carbon tax charged in respect of the diesel), in computing their taxable farming profits, farmers may claim a further deduction for farm diesel in an amount equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).

The “carbon tax” referred to in section 664A is the carbon component of Mineral Oil Tax (MOT) for farm diesel, which was introduced on 1 May 2010. The rate of the charge was increased on 1 May 2012, 1 May 2020, 1 May 2021 and will increase on 1 May 2022.

The current rate of the carbon charge component per 1,000 litres of MOT, since 1 May 2021, is €90.81. This will increase on 1 May 2022 to €111.14 per 1,000 litres.

I am informed by Revenue that it has updated Tax and Duty manual 23-01-36 to reflect the current rate of the carbon charge component.  A table on the rates of MOT are available on the Revenue website at www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/mineral-oil-tax.aspx.

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