David Stanton (Cork East, Fine Gael)
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Question 127: To ask the Minister for Finance further to Parliamentary Question No. 159 of 27 May 2008 the breakdown of moneys accrued by the Exchequer for each month respectively in 2007 and to date in 2008 by way of excise duty, VAT and other such payments through the sale of respective petroleum products including home heating oil, petrol, diesels and so on; and if he will make a statement on the matter. [21947/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners that the amounts of tax revenue collected from Mineral Oil Tax on petroleum products for each month respectively in 2007 and the first four months of 2008 are set out in the following Appendix A and Appendix B.

VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified and therefore the VAT yield in each month on petroleum products cannot be provided. The figures provided in this reply for monthly VAT receipts are estimates of the amount of VAT yield that would be generated by the volume of clearances of oil products up to the end of each month. Mineral Oil Tax is paid in the month of clearance of the product but, depending on the nature of the registration status of a trader, VAT returns can be made monthly, bi-monthly, quarterly, half yearly or annually. This will dictate the point in time when VAT on sales will actually be paid to Revenue.

It should also be noted that the VAT content of purchases of Auto Diesel, Marked Gas Oil, Kerosene and Fuel Oil is a deductible credit for business in the Irish VAT system. There are no VAT receipts for Heavy Fuel Oil, as this type of residual oil is used only by registered traders and any VAT paid is reclaimed.

The yield from excise, as excise is set at a nominal amount, does not increase as the price of fuels increase. On the other hand, the yield from VAT, as VAT is set as a percentage of the price, increases as the price of fuels increase. However, in this regard it should 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.