Richard Bruton (Dublin North Central, Fine Gael)
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Question 165: To ask the Minister for Finance if he will clarify the impact of the carbon tax on marked gas oil and agricultural diesel; if he has received representation regarding the deferral of that date; and if he will make a statement on the matter. [13670/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced in the Budget that a carbon tax at a rate of €15 per tonne is being introduced on fossil fuels. The tax was applied to petrol and auto-diesel with effect from midnight, 9 December 2009; and will apply from 1 May 2010 to kerosene, marked gas oil (also known as 'green diesel' or 'agricultural diesel'), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order.

The carbon tax will result in an increase of approximately 4 cents per litre (excluding VAT) on Marked Gas Oil including agricultural diesel, broadly the same as that for regular diesel. I have received representations from numerous organisations in relation to the carbon tax, including the treatment of agricultural diesel. However, as provided for in the Finance Bill 2010, the carbon tax will apply to marked gas oil on 1 May 2010.