Louise O'Reilly (Dublin Fingal, Sinn Fein)
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75. To ask the Minister for Finance if consideration has been given to putting in place a carbon tax rebate for horticulturists and growers who recycle carbon in greenhouses and tunnels; and if he will make a statement on the matter. [25144/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Section 98 of Finance Act 1999 provides for a relief from Mineral Oil Tax (MOT) for certain heavy oils and liquified petroleum gas used in horticultural production and mushroom cultivation. Heavy oils within scope of the relief are kerosene, fuel oil and Marked Gas Oil.

The relief operates by way of repayment to the fuel user. The provisions currently prescribe that the repayment rate is calculated by subtracting a specified rate from the full MOT rate applicable to the fuel concerned. My predecessor introduced an amendment, in Finance Act 2022, to significantly increase the rate of repayment by providing full relief from the carbon component of MOT. The amendments were subject to a commencement order, and I am happy to advise the Deputy that I intend to bring the enhanced relief provisions into operation from 1 June 2023. This will mean that relevant fuels used for qualifying purposes from that date will be fully relieved from carbon taxation. Current repayment rates and those that will apply under the amended provisions are set out in the table below.

In addition to the MOT relief amendments, Finance Act 2022 introduced amendments to Finance Act 2010 to provide for a new relief from Natural Gas Carbon Tax (NGCT), mirroring the amended MOT relief. Once the new NGCT relief provisions are commenced, natural gas used in horticultural production and mushroom cultivation will qualify for a full relief from NGCT. I am advised by Revenue that preparations for the new NGCT relief are more complex than those for updating the existing MOT relief, so more time is required. I expect to bring the NGCT provisions into operation in the coming months.

I would also like to note that the Temporary Business Energy Support Scheme is currently supporting a broad range of businesses that have experienced a significant increase in their natural gas and electricity costs arising from the invasion of Ukraine by Russia. Businesses that are connected to the electricity grid and main gas network are eligible to apply.

A business can make a claim under the scheme if it is tax compliant, carries on a Case I trade or Case II profession and has experienced a significant increase of 30% or more in its electricity and/or natural gas average unit price. Qualifying businesses can claim for 40% of the increases in their September 2022 to February 2023 energy bills and 50% of the increase in their March 2023 to May 2023 energy bills.

Further detail on TBESS is available from : www.revenue.ie/en/starting-a-business/tbess/index.aspx.