Written Answers Nos. 308-317
308. Deputy Eoin Ó Broin asked the Minister for Finance to provide the amount of electricity for which relief is claimed from the electricity tax for 2022 for each of the categories for which relief is available, in tabular form. [52961/23]
Amharc ar fhreagra309. Deputy Eoin Ó Broin asked the Minister for Finance to outline the basis in EU law for offering relief from the electricity tax based on the fuel mix disclosure, as outlined in Section 63(3)(c) of the Finance Act 2008, as amended. [52962/23]
Amharc ar fhreagra310. Deputy Eoin Ó Broin asked the Minister for Finance further to Parliamentary Question No. 178 of 23 November 2023, of the 15.6 terawatt hours of renewable electricity for which relief was claimed from electricity tax in 2022, the portion claimed with recourse to the fuel mix disclosure; and the portion claimed by other means. [52963/23]
Amharc ar fhreagra321. Deputy Eoin Ó Broin asked the Minister for Finance whether some or all of the electricity tax has been refunded to producers of renewable electricity in line with article 15(2) of the Electricity Tax Directive in any year. [53174/23]
Amharc ar fhreagraI propose to take Questions Nos. 308, 309, 310 and 321 together.
Ireland’s taxation of fuel and electricity is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD provisions relating to taxation of electricity are transposed into national legislation in Chapter 1 of Part 2 of the Finance Act 2008 (as amended). This legislation provides for the application of an excise duty, in the form of Electricity Tax, to electricity supplied to consumers in the State. The rate of Electricity Tax is currently €1.00 per megawatt hour which is one of the lowest excise duty rates on electricity across the EU.
Electricity Tax law provides for full relief for electricity supplied for certain uses and for electricity generated from renewable sources. The amount of electricity in terawatt hours (TWh) on which relief was claimed in 2022 is set out in the table below;
|
Relief from Electricity Tax |
Amount of electricity relieved in 2022 |
|
Supplied for household use |
8.4 TWh |
|
Generated from renewable sources |
15.6 TWh |
|
Produced from environmentally friendly heat and power cogeneration |
0.5 TWh |
|
Used for combined heat and power generation |
0.000013 TWh |
|
Used for the production of electricity or in connection with such production |
0.01 TWh |
In addition to the reliefs outlined above, which operate in the first instance by way of remission, Finance Act 2008 provides for relief from Electricity Tax for electricity used for chemical reduction, electrolytic and metallurgical processes, produced on board a boat or other craft and used under diplomatic arrangements in the State. These reliefs are operated by way of repayment. I am advised by Revenue that data on repayment claims in respect of these reliefs is not readily available.
The relief for electricity generated from renewable sources is provided for in Section 63(1)(b) of the Finance Act 2008. These provisions are underpinned by Article 15(1) of the ETD which allows Member States to fully or partially relieve supplies of electricity generated from renewable sources including solar, wind, wave, tidal or geothermal/hydraulic origin, along with electricity produced from biomass or from products produced from biomass. In addition to the relieving provisions in Article 15(1), Article 15(2) allows Member States to operate reliefs by way of repayment. As Ireland operates the renewable electricity relief by way of remission in the first instance, refunds to suppliers only arise in cases of overpayment.
In response to recent Parliamentary Questions from the Deputy I have outlined that the regulation of the State’s electricity market falls within the remit of my colleague, the Minister for the Environment, Climate and Communications. The electricity market regulatory framework requires suppliers to provide details to consumers and to the Commission for Regulation of Utilities (CRU) on the origin of electricity supplies, referred to as Fuel Mix Disclosures. Under EU law, electricity suppliers may trade in Guarantees of Origin which are electronic documents that are used to certify that a quantity of electricity was produced from renewable sources. Guarantees of Origin may be used as the basis for accounting for renewable electricity in Fuel Mix Disclosures. It is important to note that Guarantees of Origin do not necessarily follow the flow of electricity. The electricity market is complex with multiple transactions between suppliers and electricity generators prior to supply to consumers. This means that there may not always be clear traceability of renewable supply from the producer to the consumer.
As already outlined, Section 63(1)(b) of the Finance Act 2008 provides for relief for electricity generated from renewable sources. Suppliers claim this relief by way of remission and detail the amount of renewable electricity on annual returns. Where a supplier cannot establish the origin of electricity supplied, section 63(4)(c)(i) provides that the supplier should use Fuel Mix Disclosure data. This is a national legislative provision for the purposes of supporting the effective operation of the Electricity Tax in situations that would otherwise be unclear. The ETD does not prescribe how Member States should operate reliefs or exemptions. Best practice in designing and legislating for reliefs is to minimise administrative burden and address cashflow issues whilst mitigating compliance risks to the greatest extent possible.
I am advised by Revenue that Electricity Tax returns data does not allow for the quantification of relief claims based on Fuel Mix Disclosures and therefore it is not possible to provide the breakdown the Deputy is looking for in relation to the 15.6 TWh of renewable electricity for which relief was claimed from electricity tax in 2022. I am further advised that claims for Electricity Tax relief are subject to compliance interventions on a risk basis, as is the norm with all self-assessed taxes, and where non-compliance is detected, it is dealt with under the terms of Revenue’s published Code of Conduct for Revenue Audit and other Compliance Interventions. This could involve the collection of any underpaid, or improperly claimed refund of, tax or duty together with statutory interest and civil penalties, if appropriate.
311. Deputy Carol Nolan asked the Minister for Finance the titles of the White Papers published by his Department from 2008 to date; if he will provide online links to these papers; and if he will make a statement on the matter. [52979/23]
Amharc ar fhreagraI am advised that my Department has not published any White Papers over the period 2008 to date.
As part of the annual budgetary process, my Department publishes a document entitled “Estimate of Receipts and Expenditure For the Year Ending 31 December”. While this is often referred to as the 'White Paper', it is not a policy paper and does not set out to identify any potential changes to existing regulatory practices or legislation.
312. Deputy Carol Nolan asked the Minister for Finance the total number of consultancy reports commissioned or funded by his Department that have been categorised or designated as not for external publication from 2011 to date; the total costs incurred on commissioning or funding these reports; and if he will make a statement on the matter. [53000/23]
Amharc ar fhreagraI wish to advise the Deputy that the Department of Finance commissioned or funded eight reports, and in collaboration with other Departments part funded one report, categorised or designated as not for external publication at a cost of €246,700.45 for the period 2011 to 28 November 2023.
313. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 459 of 21 April 2021, the current steps being taken to address the proliferation of illegal vehicle registration plates on motor cars; whether sufficient legislation is in place for gardaí to apply a fixed charge penalty notice for this offence (details supplied); and if he will make a statement on the matter. [53019/23]
Amharc ar fhreagraS.I. No. 318 of 1992, the Vehicle Regulation and Taxation Regulations, 1992 (as amended), governs the content, text, size, and other requirements of a registration plates. Certain characteristics of Irish plates are aligned with other countries across the EU by Council Regulation (EC) 2411/98 and by the Vienna Convention on Road Traffic.
The National Car Test (NCT) includes checks on the placement, format, legibility, visibility, and colour of a vehicle’s registration plates. Non-compliance with any prescribed vehicle registration plate requirement is recorded as a “major defect” under the NCT, and a vehicle displaying non-compliant registration plates will fail an NCT test until the issue is fixed.
While the format of the registration plate is regulated, there are no regulations in relation to the manufacture of such plates. The problems associated with the illegal use of false registrations plates are acknowledged, and the potential of addressing this through a new regulatory regime for the production and supply of plates is a matter that has been considered by Revenue in the past. On balance, however, it was concluded that such controls would not be effective given the simplicity and widespread availability of technology able to manufacture number plates.
Decisions about the regulation of vehicle registration plates or their production and supply, including penalties for offences, are policy matters for my Department and the Departments of Transport and Justice, which are kept under review.
314. Deputy Paul Kehoe asked the Minister for Finance if there has been a change in policy in respect VAT treatment for farmers purchasing fixed equipment for their farm (details supplied); if he will explain the inconsistencies and give a clear direction going forward; and if he will make a statement on the matter. [53033/23]
Amharc ar fhreagraThe VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, farmers can elect whether or not to register for VAT in respect of their farming business.
I understand that farmers who register for VAT have an entitlement to reclaim VAT on costs incurred in relation to their agricultural business. A farmer who has elected to register for VAT and charges VAT on their supplies can claim a deduction for VAT incurred on costs that are used for the purposes of their taxable supplies. A VAT-registered farmer would be entitled to reclaim VAT incurred on farm equipment such as calf feeders, collars and equipment used to monitor the health of cattle.
Alternatively, farmers can remain unregistered for VAT purposes, and opt for the Flat Rate Farmer’s Scheme. This scheme is a long-standing arrangement under EU and national VAT law that allows farmers who remain unregistered for VAT purposes to be compensated on an overall basis for the VAT incurred on their purchases of goods and services. It allows such farmers to charge and retain a “flat-rate addition” onto the amount that they charge for the agricultural goods and services they supply in the course of their farming business. The flat-rate addition is calculated as a percentage of the amount payable to the farmer and is based on the commercial agreements between the farmer and customer. The scheme is designed to reduce the administrative burden on farmers and allows them to remain outside the normal VAT system, thereby avoiding the obligations of registration and returns.
Unregistered farmers may also be able to avail of a VAT refund on certain expenses allowed for under the Value-Added Tax (Refund of Tax) (Flat-rate Farmers) Order 2012 (S.I. No. 201/2012) (“VAT refund order”). The VAT refund order allows for refunds to be claimed on outlay incurred: on the construction, extension, alteration or reconstruction of a farm building or structure; on fencing, draining and reclamation of farmland; and on the construction, erection or installation of qualifying equipment for the micro-generation of electricity for use in a farm business. Outlay for other purposes, such as on the acquisition of calf feeders, collars and equipment used to monitor the health of cattle, do not come within the scope of the refund order.
I am advised by Revenue that, where the installation of calf feeders requires the alteration or reconstruction of a farm building or structure, the corresponding outlay has been allowed in certain circumstances. In addition, outlay on drafting gates that may from part of a system used to monitor the health of cattle may be considered fencing under the Order, and has been allowed in certain circumstances where outlay on the other components of the system has not been allowed.
Revenue has not changed their approach to the refund order. Rather, each claim is assessed on its own merits. Claims that do not meet the conditions of the refund order cannot qualify for a refund of the VAT.
315. Deputy Carol Nolan asked the Minister for Finance to provide an update when he anticipates that the new Disabled Drivers Medical Board will become operational; and if he will make a statement on the matter. [53043/23]
Amharc ar fhreagraProgress has been made on efforts to convene a new Disabled Drivers Medical Board of Appeals (DDMBA), to secure new hosting arrangements for the DDMBA and to recommence the appeals process.
I have now formally appointed all five members to the new DDMBA. Funding arrangements between the Department of Finance and the Department of Health have been agreed. On this basis the National Rehabilitation Hospital has confirmed they will again host the DDMBA.
Consequently, I can confirm that appeal hearings will recommence in the first half of December 2023.
I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health, Department of Finance officials have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. Officials have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.
Finally, I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
316. Deputy Ged Nash asked the Minister for Finance the amount his Department spent in 2021, 2022 and up to 27 November 2023 on advertisements with a website (details supplied); and if he will make a statement on the matter. [53052/23]
Amharc ar fhreagraI wish to advise the Deputy that the Department of Finance had no spend on advertisements with the website X (formally Twitter) for the dates 2021 to 27 November 2023.
317. Deputy Ged Nash asked the Minister for Finance the amount his Department spent in 2021, 2022 and up to 27 November 2023 on advertisements with two websites (details supplied) respectively, in tabular form; and if he will make a statement on the matter. [53072/23]
Amharc ar fhreagraI wish to advise the Deputy that the Department of Finance had no spend on advertisements with the websites Facebook and Instagram for the dates 2021 to 27 November 2023.
