Eamon Gilmore (Dún Laoghaire, Labour)

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 be amended, with effect as on and from 7 December 2011—

(a) in section 96(1B) (inserted by section 64(1)(f) of the Finance Act 2010 (No. 5 of 2010)), by substituting "A is the amount to be charged per tonne of CO2 emitted, being €20 in the case of petrol, aviation gasoline and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €15 in the case of each other description of mineral oil in Schedule 2A" for "A is the amount, €15, to be charged per tonne of CO2 emitted",

(b) by substituting the following for Schedule 2 to that Act (as amended by section 42 of the Finance Act 2011 (No. 6 of 2011)):

"SCHEDULE 2

RATES OF MINERAL OIL TAX

(With effect as on and from 7 December 2011)

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres
Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€60.73 per 1,000 litres
Other heavy oil	€88.66 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€88.23 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres
Coal:
For business use	€4.18 per tonne
For other use	€8.36 per tonne

",

and

(c) by substituting the following for Schedule 2A to that Act (as amended by section 64(1)(e) of the Finance Act 2010):

"SCHEDULE 2A

CARBON CHARGE

(With effect as on and from 7 December 2011)

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres
Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€45.95 per 1,000 litres
Other heavy oil	€41.30 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€24.64 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres

",

(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).

This resolution provides for an increase in the carbon charge component of the mineral oil tax on petrol and auto-diesel, with effect from midnight tonight. The carbon charge for those fuels is being increased from the equivalent of €15 per tonne of carbon dioxide emitted to €20 per tonne. When VAT is included, the increase on petrol is just under 1.5 cent per litre, and the increase on diesel is just over 1.5 cent a litre. The increase also applies to the mineral oil tax rate for aviation gasoline, which is aligned to the petrol rate, and the rates for heavy oil used for recreational flying and boating, which are aligned to the auto-diesel rate. It is intended that the same increase from €15 to €20 per tonne of carbon dioxide emitted will be extended to all other types of mineral oils and to natural gas from 1 May next year, and the necessary provisions for this will be included in the Finance Bill.

The yield from the carbon charge increase across all fuels is expected to be around €80 million in 2012 and €109 million, inclusive of VAT, in a full year. The impact on the consumer price index is estimated at around 0.09% in a full year.

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