Dáil Éireann Debate, Tuesday - 22 March 2022
228. Deputy Colm Burke asked the Minister for Finance if additional supports will be available to small businesses to assist with the cost of fuel, particularly for those that operate trucks and additional vehicles; and if he will make a statement on the matter. [13956/22]
Amharc ar fhreagra242. Deputy John Brady asked the Minister for Finance if he will consider increasing the diesel rebate scheme to assist hauliers who have been impacted greatly as a result of the recent rise in fuel costs; and if he will make a statement on the matter. [14299/22]
Amharc ar fhreagraI propose to take Questions Nos. 228 and 242 together.
On 11 March Minister Eamon Ryan and Minister of State Hildegarde Naughton announced the implementation of an emergency support measure for licensed hauliers to address cost pressures arising from current high fuel prices.
A targeted and temporary grant scheme will provide a payment of €100 per week for every heavy goods vehicle (over 3.5 tonnes) as listed on a road haulage operator’s licence. The scheme will operate for a period of 8 weeks and will be reviewed thereafter.
This measure comes in addition to the VAT inclusive reduction of 15 cent per litre of diesel and 20 cent per litre of petrol which came into effect on 10 March and will apply until 31 August 2022.
Qualifying road haulage operators may also apply for relief under the Diesel Rebate Scheme (DRS) which was introduced in 2013 with the aim of providing support to road haulage and bus transport operators when the retail price of auto diesel is relatively high. The DRS is provided for in section 99A of Finance Act 1999 and operates on a sliding scale basis, whereby a partial rebate of Mineral Oil Tax (MOT) is available when the retail price of a litre of diesel exceeds €1.00 excluding VAT. The repayment rate increases gradually as the retail price increases up to a maximum repayment rate of 7.5 cents per litre. In Budget 2020, the marginal rate of repayment was increased from 30% to 60% at prices over €1.07 excluding VAT. The rate of repayment is currently capped at 7.5 cents per litre which is reached when the average price of diesel, excluding VAT, is €1.16 or more per litre.
The Energy Tax Directive sets minimum rates for the taxation of auto fuels. The combination of the temporary excise reduction and the Diesel Rebate Scheme mean it is not possible to reduce the rate of MOT on diesel any further.
As the Deputy will be aware, VAT registered businesses are also eligible to claim a refund on the VAT paid for diesel used in the course of business activities.
The Government is very aware of the impact of increased fuel prices on business and society alike and for this reason, we have taken the decision to provide additional financial support by reducing the excise rate temporarily and providing a grant scheme to licenced hauliers. The combined cost of these measures is over €300 million euro.
The temporary excise reduction, grant scheme, DRS and VAT refund scheme all provide support to road haulage operators as well as businesses dependent on transport services and will help to lessen the impact of the current inflationary trend in fuel prices.
