Dáil Éireann Debate, Tuesday - 14 June 2022
366. Deputy Pearse Doherty asked the Minister for Finance the minimum level of excise that may apply to petrol under the European United Energy Directive; the rate that currently applies; and the cost of reducing the current rate to the minimum rate from 6 June 2022 until 12 October 2022. [28919/22]
Amharc ar fhreagra367. Deputy Pearse Doherty asked the Minister for Finance the minimum level of excise that may apply to diesel under the European Union Energy Directive; the rate that currently applies; and the cost of reducing the current rate to the minimum rate from 6 June 2022 until 12 October 2022 if the diesel rebate scheme were suspended during the same period. [28920/22]
Amharc ar fhreagra368. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of the diesel rebate scheme in the period from 6 June 2022 to 12 October 2022; and the estimated savings if it were suspended during that period. [28921/22]
Amharc ar fhreagra369. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of reducing excise duty on kerosene used for home heating oil in the period from 6 June 2022 until 12 October 2022. [28922/22]
Amharc ar fhreagraI propose to take Questions Nos. 366 to 369, inclusive, together.
Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in the Finance Act 1999 (as amended). The Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. In complying with ETD minimum rates, total MOT rates are taken into account.
The minimum MOT rates that may be applied under the ETD, as well as the MOT rates (non-carbon and carbon components) currently in place, are set out in the following table.
Current MOT rates per 1,000L & Corresponding ETD minimum rates
|
Fuel Type |
ETD minimum € |
MOT non-carbon € |
MOT carbon € |
Total MOT € |
|
Petrol |
359.00 |
371.11 |
94.87 |
465.98 |
|
Diesel |
330.00 |
295.64 |
109.74 |
405.38 |
|
Kerosene |
0.00 |
0.00 |
103.83 |
103.83 |
I am advised by Revenue that the estimated costs of reducing the current MOT rates for petrol, diesel and heating kerosene to the respective ETD minimum rates, for the period from 6 June 2022 until 12 October 2022 are set out in the below table. These estimated costs assume no behavioural change in response to such a reduction.
Cost of reducing MOT Rates to ETD Minimum
|
Fuel Type |
MOT €m |
VAT €m |
Total €m |
|
Petrol |
35.4 |
6.6 |
42 |
|
Diesel |
97.6 |
5.7 |
103.3 |
|
Kerosene |
23.5 |
2.8 |
26.3 |
Finally, I am advised by Revenue that the estimated cost of the Diesel Rebate Scheme, during the period from 6 June 2022 to 12 October 2022 is €11.6m, based on volumes on which claims were received by Revenue in 2021.
