Ciarán Cuffe (Dún Laoghaire, Green Party)
Link to this: Individually | In context

Question 140: To ask the Minister for Finance the status of attempts by the European Commission to harmonise corporate tax rates in the European Union. [10153/07]

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

The EU Commissioner for Taxation and Customs Union has stated on a number of occasions recently that the European Commission has no plans for the harmonisation of corporate tax rates in the European Union. However, a technical working group, chaired by the EU Commission, is working towards the development of a Common Consolidated Corporate Tax Base (CCCTB). Ireland, along with a number of other Member States, opposes the idea of creating common rules for the calculation of company profits for both principled and practical reasons. That said we are participating in the meetings of the technical working group strictly on a without prejudice basis.

The Deputy should be aware that a Proposal from the Commission on the CCCTB is not anticipated until 2008 and that no policy decisions have been taken on the project at the level of the Council of Ministers.

Jan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Question 141: To ask the Minister for Finance the tax incentive measures he will introduce to ensure that Ireland meets the new target agreed by EU leaders of increasing renewable energy to 20% of all energy use by 2020; and if he will make a statement on the matter. [10246/07]

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

The Government have already made clear that renewable energy will be a critical and growing component of Irish energy supply to 2020 and beyond. Renewable energy is an integral part of our climate change strategy and sustainability objectives. The additional diversity which renewables bring to Ireland's energy demand will also make a direct contribution to our goal of ensuring secure and reliable energy supplies.

The recently published Government White Paper Delivering a Sustainable Energy Future for Ireland outlines a range of measures to incentivise the development and deployment of renewable sources of energy. It sets very ambitious targets for expanding the role of renewable energy, most notably the target of 33% of electricity consumption to come from renewable resources by 2020, a target of 12% renewable heat market penetration by 2020 and a biofuels penetration target of at least 10% for 2020.

While the promotion of renewable energy is primarily a matter for my colleague, the Minister for Communications, Marine and Natural Resources, as I have stated previously the taxation system, in conjunction with other policy measures, can play a part in attaining environmental objectives including the development and deployment of renewable sources of energy. In this regard the taxation measures which are already in place or are being introduced include:

a five year excise relief scheme for biofuels, costing over €200 million, which commenced in November 2006. The scheme provides for excise relief on up to 163 million litres of biofuels per annum;

50 per cent VRT relief for hybrid vehicles, flexible fuel vehicles and electric vehicles;

extending the qualifying period from 31 December 2006 to 31 December 2011 for the scheme of corporate tax relief for corporate equity investments in certain renewable energy generation projects i.e. in solar, wind, hydro or biomass technology categories, and which have been approved by the Minister for Communications, Marine and Natural Resources;

extending to 31 December 2013 and enhancing the Business Expansion Scheme and the Seed Capital Scheme which can, among manufacturing other areas, be used for investment in companies engaged in renewable energy generation and recycling;

amending the VRT and motor tax systems to take greater account of environmental issues, in particular CO2 emissions.

The Government will examine other tax incentives or disincentives where these can be shown to have a clear cost-benefit in developing renewable sources of energy.