Written Answers - Tax Code

Wednesday, 28 March 2012

Dáil Éireann Debate
Vol. 761 No. 1

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  96.  Deputy Pat Deering  Information on Patrick Deering  Zoom on Patrick Deering   asked the Minister for Finance  Information on Michael Noonan  Zoom on Michael Noonan   the way a holder of carbon tax credits may avail of the rebate if their current business transaction is not profitable and no tax is payable. [17125/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan  Zoom on Michael Noonan  I assume that the Deputy’s question relates to the double deduction for carbon tax on farm diesel which I introduced in Finance Bill 2012.

Under this provision, farmers will be allowed a deduction in computing their farming profits or losses for the amount of additional carbon tax they incur on purchases of farm diesel following the proposed increase in the rate of carbon tax on certain fuels from 1 May 2012. The new deduction will be in addition to the existing deduction for carbon tax included in the cost of farm diesel used in the course of the farming trade.

Where a farming loss occurs, the double deduction for carbon tax will increase the amount of that loss and, depending on the farmers circumstances, the loss may, for example, be used to reduce other income (either of the farmer or of his or her spouse or civil partner) of the same year or it may be carried forward for offset against future farming profits.

  97.  Deputy Pat Deering  Information on Patrick Deering  Zoom on Patrick Deering   asked the Minister for Finance  Information on Michael Noonan  Zoom on Michael Noonan   if he will consider changing the VAT rate charged on motor fuel in view of the current high price of fuel and the benefit this is to Revenue. [17126/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan  Zoom on Michael Noonan  In matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply.

Under the EU VAT Directive, it is not possible to apply a reduced or zero rate to the supply of motor fuel. Therefore the rate of VAT that must apply to the supply of fuel is the standard VAT rate, which in Ireland is 23%.

  98.  Deputy Pat Deering  Information on Patrick Deering  Zoom on Patrick Deering   asked the Minister for Finance  Information on Michael Noonan  Zoom on Michael Noonan   if he will provide a breakdown of all taxes and duties on a litre of motor fuel. [17127/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan  Zoom on Michael Noonan  I am informed by the Revenue Commissioners that the breakdown of Mineral Oil Tax, Carbon Tax and VAT on a litre of motor fuel at average prices is as follows:

Petrol Diesel
Mineral Oil Tax 0.542 0.426
Carbon Tax 0.046 0.053
VAT 0.312 0.299
Total Tax 0.90 0.778

[159]The Mineral Oil Tax and Carbon Tax amounts were calculated using an average price of 166.9 cent per litre for Petrol and 159.9 cent per litre for Diesel.


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