Carol Nolan
Ceist:358. Deputy Carol Nolan asked the Minister for Finance if he will support measures aimed at tackling the increased cost of AdBlue reliefs; and if he will make a statement on the matter. [42640/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (358)
Freagraí scríofa
The Finance Act 1999 provides for the application of an excise duty known as Mineral Oil Tax (MOT) to specified mineral oils, such as petrol, diesel, and kerosene, that are used as fuel for motor or heating purposes. MOT also applies to fuel additives that can be added to fuel for purposes such as extending fuel or improving performance.
I understand that the product mentioned by the Deputy is a diesel exhaust fluid and that such products are injected into the exhaust system of a diesel engine to lower harmful emissions. Diesel exhaust fluid is generally stored in a dedicated tank separate to a vehicle’s fuel tank and is not mixed with fuel. In such circumstances, as the diesel exhaust fluid is neither a fuel additive nor is it used as a fuel, it does not fall within scope of MOT law, i.e. MOT does not apply.
In relation to Value-Added Tax (VAT), the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.
Diesel exhaust fluid is not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so it is liable to VAT at the standard rate, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to diesel exhaust fluid.
Question No. 359 answered with Question No. 357.