Parliamentary Question No. 189 on Tuesday, 18th December, 2012
To ask the Minister for Finance if consideration will be given to extending the diesel rebate for hauliers, as announced in Budget 2013, to the marine transportation sector in recognition of the boost such a measure would have on the expansion of the industry and the economic benefits which will accrue to local, in particular rural, areas; and if he will make a statement on the matter.
– Seán Kyne.
Minister for Finance ( Mr Noonan) :
The proposal to introduce an auto-diesel excise duty relief for licensed road hauliers that I announced in the Budget is confined to licensed and tax compliant hauliers.
However, I have received a number of submissions from, and on behalf of, private coach operators seeking to have this relief extended to them. I will consider this proposal in the context of the Finance Bill. It is worth noting that one of key arguments for introducing a rebate for the haulage industry is the fact that a large quantity of fuel purchased by this industry is purchased abroad thus generating no tax revenue for the State. A rebate should encourage hauliers to start purchasing their fuel in Ireland thus leading the measure to be more revenue neutral. Such an argument does not exist for the coach industry.
With regard to agriculture contractors, I assume the Deputy is referring to agricultural contractors using machinery designed for agricultural work. Contractors using such machinery in the course of farming work are entitled to use marked gas oil, which is taxed at a much lower rate than auto diesel.
The fuel rebate scheme proposed is governed by the terms of Council Directive 2003/96/EC of 27 October 2003 which limits its application to auto diesel used in defined categories of road vehicles.
I will be informing the European Commission of the rebate measure once it is introduced.