Dáil debates
Tuesday, 26 February 2008
Tax Code.
3:00 pm
Brian Cowen (Laois-Offaly, Fianna Fail)
I am informed by the Revenue Commissioners that the amounts of tax revenue collected from mineral oil tax and VAT on motor fuels and other oils for the years 2004 to 2007 are as follows. In summary, in the case of mineral oil tax, or excise duty, a total of approximately €1,963 million was collected in 2004; €2,048 million in 2005; €2,144 million in 2006; and €2,212 million in 2007 on motor fuels and other oils. In 2007, for example, excise on petrol and auto-diesel accounted for over 96% of the total yield.
In the case of VAT on motor fuels and other oils, it is estimated that some €491 million was collected in 2004; €586 million in 2005; €658 million in 2006; and €682 million in 2007. In 2007, petrol accounted for 68% of the VAT yield on motor fuels and other oils. The VAT yield on auto-diesel is relatively low as VAT on auto-diesel is a deductible credit for business in the Irish VAT system.
Excise rates on petrol and auto-diesel have not been increased since December 2003 with the aim of contributing to easing inflationary pressures and our excise rates are in and around the EU average. Indeed the excise rate on kerosene, which is the primary home heating oil, was reduced to zero over the 2006 and 2007 budgets.
The yield from excise duty on motor fuels and other oils increased by some 12.7% between 2004 and 2007, broadly in line with the use of such fuels. The yield for VAT on motor fuels and other oils has increased by some 39% between 2004 and 2007, reflecting both the increase in the use and price of such fuels.
The yield from excise, as excise is set at a nominal amount, does not increase as the price of fuels increase. On the other hand, the yield from VAT, as VAT is set as a percentage of the price, increases as the price of fuels increase. However, in this regard it should be borne in mind that to the extent that spending in the economy is reallocated to petrol and other oil products, and away from other VAT liable spending, and to the extent that the overall level of economic activity is reduced by higher oil prices, there may be little or no net gain to the Exchequer.
A more detailed breakdown of the excise and VAT yields I have outlined are set out in the following tables.
| Yield from Mineral Oil Tax on Motor Fuels and Other Oils | ||||
| 2004 | 2005 | 2006 | 2007 (prov.) | |
| €m | €m | €m | €m | |
| Petrol | 970.7 | 1001.9 | 1026.4 | 1052.2 |
| Auto Diesel | 870.7 | 920.5 | 1016.7 | 1083.1 |
| Fuel Oil | 12.4 | 13.4 | 11.4 | 8.4 |
| Marked Gas Oil | 70.9 | 72.9 | 68.8 | 68.4 |
| Kerosene | 33.5 | 33.7 | 18.0 | 0.0 |
| Auto LPG | 0.1 | 0.1 | 0.1 | 0.1 |
| Other LPG | 5.1 | 5.4 | 2.8 | 0.0 |
| Total Yield | 1,963.4 | 2,047.9 | 2,144.2 | 2,212.2 |
| Estimated VAT Yield from Motor Fuels and Other Oils | ||||
| 2004 | 2005 | 2006 | 2007 (prov.) | |
| €m | €m | €m | €m | |
| Petrol | 342.0 | 393.0 | 440.0 | 465.0 |
| Auto Diesel | 38.0 | 46.0 | 53.0 | 57.0 |
| Marked Gas Oil | 47.6 | 65.1 | 72.6 | 70.0 |
| Kerosene | 51.1 | 68.9 | 78.6 | 77.1 |
| LPG Domestic | 9.5 | 10.4 | 10.8 | 9.8 |
| Motor Oil & LPG | 2.4 | 2.7 | 3.0 | 3.3 |
| Total Yield | 491.0 | 586.0 | 658.0 | 682.0 |
| Note: The VAT yield from motor oils and other oils is estimated as the information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. The figures provided for VAT include revisions of figures given on 22 November 2007 in reply to parliamentary question number 30480/07. The revision was necessitated by more up to date information becoming available in the interim. |
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