Oireachtas Joint and Select Committees
Wednesday, 8 March 2023
Committee on Budgetary Oversight
Report of the Commission on Taxation and Welfare: Discussion (Resumed)
Mr. Paul Jackman:
In the document we are discussing, the basis for the differential in excise duty between diesel and petrol is defined by the authors. They point out that, when it was introduced, the rationale for this lower rate of excise duty on diesel was that businesses, particularly in heavy goods haulage, were reliant on diesel and had little or no alternative fuel source or transport modes available. The lower rate was a policy measure intended to protect the competitiveness of such businesses and we contend this is still the reality. In spite of all our aspirations, grand schemes and the mountaintop targets we are setting ourselves, that is still the reality on the ground. We are asking that the excise differential be maintained. Diesel car sales have plummeted, and when you put years on it, only the commercial sector will be reliant on diesel. Any change or increase in the excise duty is only going to hit the commercial sector and, potentially, the agricultural sector.
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