Michael Healy-Rae (Kerry, Independent)
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144. To ask the Minister for Finance if he will review the hike in the excise duty on fuel (details supplied); and if he will make a statement on the matter. [39508/23]

Michael McGrath (Cork South Central, Fianna Fail)
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In recognition of the impact of increased fuel prices in 2022, the Government provided for excise rate reductions effective from 10 March 2022 on petrol, diesel and Marked Gas Oil (MGO) in the order of 20, 15 and 2 cent per litre VAT inclusive. A further 1 cent reduction was applied to auto diesel and petrol from 1 April 2022 to offset the anticipated increase in retail price arising from biofuel obligation rate changes, while a further 3.4 cent per litre reduction applied to MGO with effect from 1 May 2022. These rate reductions were due to expire in August 2022 but were extended initially to October 2022 and then to February 2023. In February 2023 the Government further extended the reductions with a phased restoration of rates which began in June 2023:

• 01 June – VAT inclusive increase of 6 cent on petrol, 5 cent on diesel and 1 cent on MGO.
• 01 September - VAT inclusive increase of 7 cent on petrol, 5 cent on diesel and 1 cent on MGO.
• 31 October - VAT inclusive increase of 8 cent on petrol, 6 cent on diesel and 3.4 cent on MGO.

Michael Healy-Rae (Kerry, Independent)
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145. To ask the Minister for Finance if he will reduce alcohol excise by 7.5% in upcoming budgets (details supplied); and if he will make a statement on the matter. [39520/23]

Michael McGrath (Cork South Central, Fianna Fail)
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In advance of the Budget, as Minister for Finance I receive a large number of pre-budget submissions on a wide range of issues. As the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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146. To ask the Minister for Finance to outline his plans for a windfall tax, and the EU-wide plans for same; and if he will make a statement on the matter. [39526/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I understand, following clarification from the Deputy’s office, that this question relates to the measures introduced by the EU Energy Council last year in Regulation 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices. This Regulation was introduced to address windfall gains identified as arising in the energy sector due to the increase in energy prices mainly as a result of the war in Ukraine and is effective across EU Member States.

In addition to electricity demand reduction provisions, the Regulation contains two measures targeted at windfall gains in the energy sector as follows:

(i) A Temporary Solidarity Contribution (TSC) on a measure of “excess” taxable profits for the fossil fuel production and oil refining sector for the years 2022 and/or 2023, and

(ii) An electricity market price cap for non-gas electricity generators, for the period 01 December 2022 to 30 June 2023, that have not seen significant increases in their generation costs (i.e. primarily renewables).

Energy policy is under the remit of the Department of the Environment, Climate and Communications (DECC), who have led on domestic implementation of the Regulation, with support from the Department of Finance and other Departments and agencies.

On 13 June last, the Government approved the implementation of the Energy Windfall Regulation in two separate pieces of legislation as follows:

1. The Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023. This contains provisions relating to the TSC, was signed into law on 17 July, and was commenced by the Minister for the Environment, Climate and Communications with effect from 02 August.

2. The Energy (Windfall Gains in the Energy Sector) (Cap on Market Revenues) Bill 2023. This contains provisions relating to the electricity market price cap, and is currently before the Houses of the Oireachtas.

With these measures recently introduced (TSC) or still in progress (Market Cap), there are no plans at this time to introduce a windfall tax on the profits of energy companies.