Finian McGrath (Dublin North Central, Independent)
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Question 198: To ask the Minister for Finance if he will examine a matter regarding carbon tax and VAT (details supplied). [3617/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Since Budget 2010, the Mineral Oil Tax on motor fuels includes a carbon charge in respect of the carbon dioxide emitted by those fuels.

The application and operation of Value-Added Tax is governed by the EU VAT Directives. Article 78 of Council Directive 2006/112/EC provides that the taxable amount to which VAT is applied shall include "taxes, duties, levies and charges, excluding the VAT itself". Section 37(1) of the Value-Added Tax Consolidation Act 2010 provides, therefore, that the amount on which VAT is chargeable is the total consideration receivable by the supplier, "including all taxes, commissions, costs and charges whatsoever", but not including the VAT itself. Accordingly, and as in the case of excise duties on other products, VAT is chargeable on the price of motor fuel inclusive of Mineral Oil Tax.