Roderic O'Gorman (Dublin West, Green Party) | Oireachtas source

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 14 October 2020—(a) in section 96(1B), by substituting “A is the amount to be charged per tonne of CO2 emitted, being €33.50 in the case of petrol, aviation gasoline, and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €26 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €26, to be charged per tonne of CO2 emitted”,

(b) by substituting the following for Schedule 2 to that Act:

“SCHEDULE 2

Rates of Mineral oil tax

(With effect as on and from 14 October 2020)

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol .... .... .... .... .... .... .... .... Aviation gasoline .... .... .... .... .... .... .... ....	€619.36 per 1,000 litres €619.36 per 1,000 litres
Heavy Oil:
Used as a propellant .... .... .... .... .... .... .... Used for air navigation .... .... .... .... .... .... .... .... Used for private pleasure navigation .... .... Kerosene used other than as a propellant .... .... Fuel oil .... .... .... .... .... .... .... .... Other heavy oil .... .... .... .... .... .... .... ....	€515.38 per 1,000 litres €515.38 per 1,000 litres €515.38 per 1,000 litres €65.74 per 1,000 litres €95.05 per 1,000 litres €117.78 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant .... .... .... .... .... .... Other liquefied petroleum gas .... .... .... ....	€106.07 per 1,000 litres €42.48 per 1,000 litres
Vehicle gas: .... .... .... .... .... .... .... .... ....	€9.36 per megawatt hour

and(c)by substituting the following for Schedule 2A to that Act:

“SCHEDULE 2A

Carbon Charge

(With effect as on and from 14 October 2020)

Description of Mineral Oil	Rate
Light Oil:
Petrol .... .... .... .... .... .... .... .... Aviation gasoline .... .... .... .... .... .... .... ....	€77.52 per 1,000 litres €77.52 per 1,000 litres
Heavy Oil:
Used as a propellant .... .... .... .... .... .... .... Used for air navigation .... .... .... .... .... .... .... .... Used for private pleasure navigation .... .... Kerosene used other than as a propellant .... .... Fuel oil .... .... .... .... .... .... .... .... Other heavy oil .... .... .... .... .... .... .... ....	€89.66 per 1,000 litres €89.66 per 1,000 litres €89.66 per 1,000 litres €65.74 per 1,000 litres €80.27 per 1,000 litres €70.42 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant .... .... .... .... .... .... Other liquefied petroleum gas .... .... .... ....	€42.48 per 1,000 litres €42.48 per 1,000 litres
Vehicle gas: .... .... .... .... .... .... .... .... ....	€5.22 per megawatt hour

(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).

Financial Resolution No. 2 provides for an increase in the carbon charge component of mineral oil tax on petrol and auto diesel with effect from midnight tonight. The increase amounts to €7.50 per tonne of CO₂emissions. Assuming the full increase is passed through to the final retail price, this will result in a VAT-inclusive increase of 2.1 cent on the price of a litre of petrol and 2.4 cent on the price of a litre of auto diesel.

The carbon tax was implemented on a phased basis from 2009. The current rate is €26 per tonne of CO₂emission and is applied to fossil fuels. This increase will bring the rate to €33.50 per tonne. There is a commitment in the programme for Government to increase the carbon tax to €100 per tonne by 2030. This is to be achieved by a series of annual increments of €7.50 from 2021, with a final increase of €6.50 in 2030. In terms of revenue raising, the increase in the carbon tax is estimated to contribute €108 million in 2021 and €147 million in a full year.

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