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Tax Rebates

Dáil Éireann Debate, Thursday - 24 March 2022

Thursday, 24 March 2022

Ceisteanna (188)

Brendan Griffin

Ceist:

188. Deputy Brendan Griffin asked the Minister for Finance if a diesel rebate scheme will be extended to school transport operators; and if he will make a statement on the matter. [15529/22]

Amharc ar fhreagra

Freagraí scríofa

The Diesel Rebate Scheme (DRS) was introduced in 2013 with the aim of providing support to road haulage and bus transport operators when the retail price of 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 excise duty in the form 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 as the retail price of diesel 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 per litre excluding VAT. The rate of repayment is currently capped at 7.5 cent per litre which is reached when the average price of diesel, excluding VAT, is €1.16 or more per litre.

A repayment under the DRS may only be made to licensed road haulage and bus transport operators who purchase diesel in the State for use in qualifying motor vehicles. To qualify under the DRS, bus transport operators established in the State must hold either an international road passenger operator’s licence or a national road passenger operator’s licence issued under the Road Traffic and Transport Act 2006. Qualifying bus transport vehicles are those classified as an M2 or M3 vehicle under the EU “type approval” Regulation 2018/858, This includes buses, and minibuses with seating for a minimum of nine passengers. A school bus operator, appropriately licensed and using diesel purchased in the State in a qualifying vehicle, who wishes to avail of the DRS should register with Revenue. Full details on how to register for the DRS and submit claims online are given on Revenue’s website.

The Deputy will be aware that in response to the current fuel crisis I recently introduced cuts in MOT rates applying to diesel and petrol that will continue until the end of August this year. MOT rates on diesel were cut by 15c per litre inclusive of VAT and this will be followed by a further 1 cent reduction to come into effect on 1 April and run until 11 October this year. This means that from 1 April the effective rate of MOT on diesel for operators qualifying under the DRS will be at the minimum level required under the Energy Tax Directive, 33 cents per litre.

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