Brian Hayes (Dublin South West, Fine Gael)
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Question 146: To ask the Minister for Finance the Exchequer revenue made per litre of diesel; if he will present this data in percentage figures and in real terms; and if he will make a statement on the matter. [24846/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the Excise and VAT content of a litre of Diesel, based on a price of €1.43 per litre are as follows:

I would point out that excise duty rates on fuels in Ireland are relatively low by EU standards. Excise rates for diesel, petrol and other fuel oils have not been increased in the last four Budgets. The Exchequer 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, diesel 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. In relation to VAT, I should also point out that businesses are of course entitled to reclaim VAT incurred on their business inputs, including VAT incurred on diesel, as a deductible credit.