Joe Sherlock (Cork East, Labour)
Link to this: Individually | In context

Question 127: To ask the Minister for Finance the estimated additional revenue likely to accrue to the Exchequer in terms of excise duties and VAT above the estimates of Budget 2006, arising from the increase in the price of petrol and other oil products; and if he will make a statement on the matter. [19297/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am advised by the Revenue Commissioners that the additional revenue likely to accrue to the Exchequer arising from the increase in the price of petrol and other oil products relates to the VAT portion of the increased price since the start of the year. The revenue collected from mineral oil excises does not fluctuate with price changes. The estimated yield of additional VAT over and above the Budget estimate, assuming that the current prices are maintained for the remainder of the year, and assuming there is no reduction in consumption, is as set out below:

It should, however, be borne in mind that to the extent that spending in the economy is re-allocated 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.