Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 7:

In page 24, between lines 7 and 8, to insert the following: “Amendment of Schedule 2 to Finance Act 1999

11.The Finance Act 1999 is amended with effect as on and from 10 March 2022 by the substitution of the following Schedule for Schedule 2 (as amended by section 42 of the Finance Act 2021):

“SCHEDULE 2

RATES OF MINERAL OIL TAX

”.”.

Amendment No. 7 has been grouped with amendment No. 9.

Amendment No. 7 provides the necessary legislative basis for the changes approved by the Dáil under the financial resolution of 9 March. That financial resolution provided for a temporary reduction in the excise rates for auto fuels amounting to 20 cent for petrol and 15 cent for diesel motor fuels, with a proportionate 2 cent reduction in excise on marked gas oil. These reductions were provided for in recognition by the Government of the impacts of the current fuel price increases on households and businesses. The measures are VAT-inclusive and will last until 31 August. While these increases in energy costs are driven primarily by global factors, the decision was taken to alleviate some of these impacts through the domestic taxation of fuel. The measures implemented provide significant mitigation of recent fuel price increases. It is impossible, however, to offset all the recent increases just by using the taxation system. The excise reductions strike the balance between passing on a needed benefit to consumers, protecting our ability to collect tax in the future and respecting the minimum rates allowable under the EU energy tax directive. The excise reductions come in addition to a temporary and targeted emergency support measure for licensed hauliers announced by the Minister for Transport to address cost pressures arising from current high fuel prices.

Amendment No. 9 provides for amendment of the Long Title to include the excise duty reductions in the Bill.