John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Finance the consultation that has taken place between Revenue and fuel retailers relevant to the fees charged and the new regulations in respect of a fuel traders licence; if consideration was given to the costs involved for smaller operators in this sector relevant to the new compliance requirements; and if he will make a statement on the matter. [49691/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners, who have responsibility for mineral oil product taxation, that the introduction of the fuel traders’ license is a key component in combating non-compliance in the fuel sector. Illegal activity in this area, particularly the criminal activity associated with laundering marked fuel, imposes significant costs on the community and poses a serious threat to tax yield and to legitimate businesses. As part of its strategy to curb illegal activity in this area, earlier this year Revenue introduced strengthened licensing requirements for traders in auto fuels and a new licensing requirement for traders in marked fuel oil from 1 October 2012. In addition, from January 2013, there will be a new requirement for all fuel traders to make monthly returns of oil movements. These requirements are considered essential in protecting legitimate traders and curbing illegal activity. The licence fee is a flat rate excise duty of €250 and it applies to traders licensed to keep, deliver, deal in or sell marked fuel and auto fuel in respect of each premises from which they operate. This rate has not changed since 2001.

Revenue has had a number of meetings with trade representatives to explain the new licensing procedures and reporting requirements. These representative organisations have indicated their support for these initiatives, recognising their role in tackling fuel fraud and tax evasion and addressing the concerns of compliant traders who face unfair competition from illicit traders. In designing the new system, Revenue was conscious of the potential compliance burden on traders, particularly small traders, and the new reporting requirements, for example, allow for aggregate reporting of marked fuel deliveries to domestic users. Revenue has communicated with traders to explain the new system and has published detailed information on its website at www.revenue.ie. I am assured by Revenue that the new monthly return (ROM1) is relatively straightforward and that they have scheduled a series of seminars for traders throughout November to explain how the new system will work in practice and to clarify any queries they may have.

The laundering of marked fuel and its subsequent sale to motorists through retail outlets and other means is a serious, multi-faceted problem with significant consequences for the exchequer, legitimate traders, unsuspecting motorists and the environment. Trading in marked fuel, which is taxed at a lower rate than road fuel on condition that it is used only for specified off-road activities, carries certain responsibilities. As Minister for Finance, I fully support the comprehensive set of measures being implemented by the Revenue Commissioners to ensure more effective control of the distribution of road fuels and marked fuels, including the new licensing requirements and the new electronic reporting system for oil movements.