Frances Black (Independent) | Oireachtas source

Recommendation No. 6 calls for the Minister to produce a report outlining the potential for Ireland to waive the excise exemption on aviation kerosene by entering into bilateral agreements to tax fuel for intracommunity flights. On Committee Stage, my colleague Senator Ruane stated that the Government provided €2.4 billion in subsidies to the fossil fuel industry in 2019, according to the Central Statistics Office, CSO. This was 1% higher than the previous year and almost 70% higher than in 2000, when subsidies totalled €1.4 billion. Fossil fuel subsidies can support either production or consumption activities. The CSO figures show indirect subsidies arising from revenue forgone due to tax abatements accounted for almost 90% of the €2.4 billion total. The single biggest one was the excise duty exemption for jet kerosene used for domestic and international commercial aviation.The revenue forgone from this measure in 2019 was €634 million, while the revenue forgone from the lower excise duty on diesel fuel was estimated at €400 million. There have been several calls for this to be unwound given the higher rate of nitrous oxide and particulates emitted from diesel fumes, both of which have been linked to premature deaths and strokes in humans.

Our recommendation reflects the exchange Senator Ruane had with the Minister on Committee Stage and looks to the mechanisms by which the exemptions can be waived. I urge the Minister to accept the recommendation.