Dan Neville (Limerick, Fine Gael)
Link to this: Individually | In context | Oireachtas source

228. To ask the Minister for Finance if he will consider the request from agricultural contractors to be allowed to claim VAT back as other road haulage firms are able to do so. [13407/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

VAT registered traders, such as agricultural contractors and road haulage operators, have an entitlement to deduct the VAT charged to them on diesel used for business purposes. However, I am advised by the Revenue Commissioners that, following confirmation from the Deputy, the question is intended to apply to the diesel rebate scheme. Under this scheme, qualifying road transport operators are entitled to claim a rebate of part of the duty paid on auto diesel used by them in qualifying road vehicles. The value of the rebate for the quarter ended 31 December 2013 is 6.2 cent per litre.

The Deputy queries whether the rebate scheme should be extended to diesel used by agricultural contractors in agricultural machinery designed for off-road work. However, such an extension is precluded under the terms of Council Directive 2003/96/EC of 27 October 2003 which limits the rebate to auto diesel used in defined categories of road vehicles.  It should be noted, however, that contractors using agricultural machinery in the course of farming work are entitled to use marked gas oil which, at €102.28 per 1,000 litres, is taxed at a much lower rate than auto diesel at €479.02 per 1,000 litres.