Dáil debates
Wednesday, 6 December 2006
Financial Resolution No. 2: Mineral Oils
6:00 pm
Bertie Ahern (Dublin Central, Fianna Fail)
I move:
(1) THAT for the purposes of the tax charged by virtue of section 95 of the Finance Act 1999 (No. 2 of 1999), that Act is amended, with effect as on and from 1 January 2007, by substituting the following for Schedule 2 to that Act, as amended by section 79(a) of the Finance Act 2006 (No. 6 of 2006):
| "Rates of Mineral Oil Tax. | |
| Description of Mineral Oil | Rate of Tax |
| Light Oil: | |
| Leaded petrol | â'¬553.04 per 1,000 litres |
| Unleaded petrol | â'¬442.68 per 1,000 litres |
| Super unleaded petrol | â'¬547.79 per 1,000 litres |
| Aviation gasoline | â'¬276.52 per 1,000 litres |
| Heavy Oil: | |
| Used as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme | â'¬368.05 per 1,000 litres |
| Other heavy oil used as a propellant | â'¬420.44 per 1,000 litres |
| Kerosene used other than as a propellant | â'¬00.00 |
| Fuel oil | â'¬14.78 per 1,000 litres |
| Other heavy oil | â'¬47.36 per 1,000 litres |
| Liquified Petroleum Gas: | |
| Used as a propellant | â'¬63.59 per 1,000 litres |
| Other liquified petroleum gas | â'¬10.00 |
| Substitute Fuel: | |
| Used as a propellant | â'¬368.05 per 1,000 litres |
| Other substitute fuel | â'¬47.36 per 1,000 litres |
| Coal: | |
| For business use | â'¬4.18 per tonne |
| For other use | â'¬8.36 per tonne |
".
(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).
Resolution No. 2 provides with effect from 1 January 2007 for the removal of the non-auto rates of mineral oil tax on kerosene and liquid petroleum gas. When VAT is included these amount to approximately 1.8 cent on a litre of kerosene and 1.1 cent on a litre of LPG. The changes will apply primarily to kerosene and LPG used for heating. It is estimated that these measures will cost the Exchequer approximately €24 million next year.
Resolution No. 3 provides for excise duty increases on tobacco products with effect from midnight, which when VAT is included amounts to an increase of 50 cent on a package of 20 cigarettes with pro rata increases on other tobacco products. This increase will bring the price of a packet of 20 cigarettes in the most popular price category to €7.05. It will ensure that taxation policy continues to play a key part, along with the work of the Department of Health and Children and the Office of Tobacco Control in discouraging smoking. It is particularly the case among young smokers where price sensitivity is greatest. It is anticipated that the excise yield from tobacco products will be €1.197 billion in 2007. This represents an increase of €98.5 million over the projected figure if there were no change in the current excise rates. There will also be some increases in the VAT yield.
I recommend both resolutions to the House.
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