Tuesday, 26 February 2019
Department of Finance
Carbon Tax Implementation
113. To ask the Minister for Finance if the carbon tax that applies to peat extracted for fuel, horticultural or other purposes will be extended in view of the fact that the emissions of greenhouse gases are the same irrespective of the way in which the peat is oxidised. [9469/19]
Section 77 of the Finance Act 2010 provides that for the purposes of the solid fuel carbon tax, ‘solid fuel’ means coal or peat. Specific rates of solid fuel carbon tax apply to coal, peat briquettes, milled peat and other peat of €52.67, €36.67, €17.99 and €27.25 per tonne respectively.
Section 77 also provides that:
- ‘milled peat’ means ‘granulated peat that is supplied for use as a fuel’
- ‘other peat’ means ‘peat other than milled peat and briquettes that is supplied for use as a fuel’.
Therefore, milled peat and other peat are not currently liable to solid fuel carbon tax when supplied for purposes other than use as a fuel, such as for horticultural purposes.
Section 78 of the Finance Act 2010 outlines that the rates of solid fuel carbon tax for each category of solid fuel are in proportion to the emissions of CO2 from the combustion of the solid fuel concerned.
Decisions on the scope of solid fuel carbon tax or the rates of tax involved are the subject of annual review as part of the Tax Strategy Group and annual Budget processes.