Darren O'Rourke (Meath East, Sinn Fein)
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96. To ask the Minister for Finance the taxes levied on aviation fuel; and if he will make a statement on the matter. [27850/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland’s excise duty treatment of fuel used for air navigation is based on European law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive. Under this Directive, Member States are obliged to exempt certain fuels used for commercial aviation purposes from excise duty. The scope of this exemption must include jet fuel (which is the most commonly used heavy oil in air navigation) and must encompass such fuel used for intra-Community and international air transport purposes.

A Member State may waive this exemption where it has entered into a bilateral agreement with another Member State to tax fuel for intra-community flights. With regard to fuel for international transport, the scope for a Member State to take a unilateral approach to taxation is limited by international law and a range of bilateral and multilateral agreements that operate under 1944 Convention on International Civil Aviation (known as the Chicago Convention).  

VAT is charged on domestic and private usage of jet fuel at the reduced rate of 13.5%, while VAT is charged at the standard rate of 23% on aviation gasoline used for the same purpose.  The supply of aviation fuel for international air travel is zero rated and airline tickets are exempt from VAT throughout the EU.  

Finally, I am informed by Revenue that the breakdown of taxes levied on the different types of aviation fuel as provided for under the Finance Act 1999 and Energy Tax Directive are shown in the table below.