Jackie Cahill (Tipperary, Fianna Fail)
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168. To ask the Minister for Finance if he will remove carbon tax on peat products (details supplied); and if he will make a statement on the matter. [10566/16]

Michael Noonan (Limerick City, Fine Gael)
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The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. In this regard solid fuels have the highest carbon content of all fossil fuels.  As a result they are considered the dirtiest fuels and given the environmental impact it is important they are taxed.

I am advised by the Commissioners that solid fuel traders who make taxable supplies of solid fuel are obliged to register with them for tax purposes and SFCT is subject to the full range of compliance interventions and enforcement provisions for self-assessed taxes. In circumstances where there are grounds to believe that tax due has not been paid, Revenue investigates the suspect person's tax liabilities and collects any unpaid tax, including unpaid income tax, SFCT and VAT, together with any interest or penalties due.

As part of its work against the shadow economy, Revenue chairs the Hidden Economy Monitoring Group (HEMG) to facilitate the reporting of information by traders through their representative associations. Solid fuel traders who suspect, or have evidence, that illegal and/or untaxed solid fuel is being sold in their area should report any information to their local authority and Revenue. Revenue has held a number of meetings with suppliers on matters relating to untaxed supplies of solid fuel and, in common with all such reports, the information received is treated confidentially and is investigated fully for evidence of unpaid tax liabilities.

Greenhouse gases are contributing to climate change and as a signatory to the UNCOP 21 Paris Agreement Ireland has committed to play its part in reducing emissions.  The carbon tax is deemed to be the most cost effective way of reducing overall emissions and therefore plays an important role of providing incentives for emission reduction activities in this regard, and it is important the tax is levied on all fossil fuels fairly to encourage less environmentally harmful behaviours.

Accordingly, I do not intend to reduce the rate of carbon tax on peat products.