Mairead Farrell (Galway West, Sinn Fein)
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187. To ask the Minister for Finance if it is a requirement for aircraft to also be registered for tax purposes in Ireland, given that, according to the Irish Aviation Authority, "an aircraft may be registered in the State subject to the condition that it be managed and operated from a place within the State and based therein or that it be managed and operated by an air transport undertaking holding an Air Operator Certificate issued by the Authority"; and if he will make a statement on the matter. [6912/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that there is no requirement for specific aircraft to be registered in Ireland for tax purposes.

Where persons within the scope of Irish tax are engaged in activities relating to aircraft, such as the leasing of aircraft, they are required to register and account for any taxes due in relation to that activity. This might include, for example, corporation tax in relation to income and profits earned in respect of that activity or payroll taxes in connection with the employment of staff.

In scenarios where an aircraft is physically imported into Ireland, a customs declaration will need to be lodged with the Automated Import System (AIS). Any customs duties/import VAT that may apply on physical importation would be charged then. In scenarios where the aircraft is registered with an aviation association in the EU or a third country, a 0% Customs Duty charge applies.

Pearse Doherty (Donegal, Sinn Fein)
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188. To ask the Minister for Finance the excise rate, and its components, applied to natural gas for household use, in terms of both euros per gigajoule and per MWH at GCV, in the years 2016 to 2022 inclusive; and the scheduled rates for 2023 to 2025 inclusive. [6992/23]

Pearse Doherty (Donegal, Sinn Fein)
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189. To ask the Minister for Finance the minimum excise rate that may be applied to natural gas for household use, in terms of both euros per gigajoule and per MWH at GCV, under the Energy Tax Directive. [6993/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 188 and 189 together.

Ireland's taxation of fuel is subject to European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. The ETD allows for differentiated rates of tax to be applied to natural gas used for motor purposes and for heating in both business and non-business settings. The ETD minimum rate that must be applied to natural gas for business use heating is €0.15 per gigajoule (GJ) at gross calorific value (GCV) which equates to €0.54 per MegaWatt hour (MWh). Natural gas used for non-business heating purposes must be taxed at a minimum rate of €0.30/GJ or €1.08/MWh. Notwithstanding the ETD minimum rate for non-business use, Member States may partially or fully exempt natural gas used in households.

Natural Gas Carbon Tax (NGCT) was introduced in Ireland on 1 May 2010 and applies to all natural gas supplied to consumers. NGCT is a “pure” carbon tax so there is no non-carbon component to it and the rate is directly proportionate to the amount of CO₂emitted when natural gas is combusted. Finance Act 2020 introduced a 10-year trajectory for carbon tax increases to reach levels based on charging €100 per tonne of CO₂by 2030. Current and previous rates of NGCT are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf. Irish natural gas consumers are billed based on supplies measured in MWh at GCV and NGCT rates are expressed to align with this.

The same NGCT rate currently applies to natural gas used for business and non-business heating purposes and there is no exemption for natural gas supplied to households. The table below sets out current and historic NGCT rates in both GJ and MWh units of measurement. It also includes the amount charged per tonne of CO₂ which is the basis of the NGCT rates. Finally, the table also includes future NGCT rates as already legislated for in section 67(1) of Finance Act 2010 (as amended).