Cormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

255. To ask the Minister for Finance when he will bring forward a medium term fiscal plan; and if he will make a statement on the matter. [60196/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

The single biggest change from the recent revision of the EU fiscal framework is the requirement for Member States to produce and submit Medium-Term Fiscal Structural Plans to the European Commission.

Once endorsed by the Council of the EU, these plans commit Member States to an agreed medium-term expenditure path which will be subject to annual assessments by European authorities.

Ireland published its first plan on October 15th of last year. However, in line with the revised EU regulations , the Government has stated its intention to prepare and submit a new plan, which will set out the fiscal strategy to 2030.

While the formal requirement for budgetary policy to take a medium-term focus is driven by the revised European regulations, the merit of medium-term fiscal planning is evident in the face of numerous challenges facing the Irish economy.

Officials in my Department are currently preparing a new Medium-Term Fiscal Structural Plan. While I cannot give a firm date for publication, it will be published in due course.

Cathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context

256. To ask the Minister for Finance the plans he has to address concerns raised by a sector (details supplied); and if he will make a statement on the matter. [64726/25]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context

The Government recognises that the cost of doing business has been a challenge for firms in recent years, including in the transport sector, due to wider inflationary pressures.

To address cost pressures and strengthen competitiveness, the Government has published the Action Plan on Competitiveness and Productivity and established the Cost of Business Advisory Forum, both Programme for Government commitments. The Action Plan focuses on regulatory reform, reducing the cost burden on firms, improving competition, and addressing energy affordability. The Cost of Business Advisory Forum brings together representatives from across sectors to consider drivers of business costs and potential mitigation measures. Its second meeting in July focused on energy costs, with a report to Government due in Q1 2026.

Budget 2026 provides a pro-enterprise package of €9.4 billion (€8.1 billion in spending and €1.3 billion in tax measures). Approximately €531 million of the Budget package – or 40% of the tax package – is dedicated to enterprise and SME supports, with a full-year cost of around €1.1 billion.

With regard to taxation of fuels, all transport fuels are subject to excise duty in the form of Mineral Oil Tax (MOT), and to Value-Added Tax (VAT).

In relation to MOT, rates comprise a non-carbon and a carbon component. The carbon component, or carbon tax, is proportional to the fuel’s carbon dioxide emissions so higher emitting fuels, such as auto-diesel, have higher carbon tax rates. Auto-diesel is the predominant fuel in the transport sector and in November 2021 the applicable MOT rate was €535.46 per 1,000 litres. The current rate of €615.76 per 1,000 litres reflects an increase of €80.30 per 1,000 litres to the carbon component. This increase has been implemented in four equal amounts each October since 2021 under the 10-year carbon tax trajectory. Current and historical MOT rates for all fuel types are published on Revenue’s website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf.

The Diesel Rebate Scheme (DRS) provides a partial rebate of MOT to qualifying road haulage and bus transport operators, when the average retail price of auto-diesel exceeds €1.00 per litre excluding VAT. The DRS operates on a sliding scale basis, whereby the repayment rate increases gradually as the retail price increases, up to a maximum repayment rate of 7.5 cents per litre. The DRS repayment rate has been at the maximum level for almost four years. This is in additional to VAT registered businesses’ ability to deduct the VAT charged on the purchase of business inputs, such as auto diesel or HVO. In 2024 the DRS scheme provided over €31 million in support to haulage companies.

To incentivise the uptake of more sustainable and renewable fuels, biofuels are relieved of the carbon component of MOT and are not impacted by annual carbon tax increases. As a result, the MOT rate differential between biofuels and fossil fuels will continue to widen as the 10-year carbon tax trajectory up to 2030 is implemented. Information on effective MOT rates on biofuels compared with rates on fossil fuels, such as auto-diesel, is published on Revenue’s website at www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/liquid-substitute-fuels/index.aspx.

In relation to VAT, the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exempt from VAT. Motor fuels, such as petrol and auto-diesel, are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, currently 23%.

Petrol and auto-diesel are treated differently under Irish VAT law regarding VAT recovery entitlements of VAT registered taxpayers. VAT registered businesses are entitled to recover the cost of VAT on the purchase of diesel, used in the course of their business, as is the case with most business costs. However, the VAT Consolidation Act provides that VAT on petrol is not recoverable, including by businesses registered for VAT, except where the petrol is purchased as stock-in-trade of the business.

Policy with regard to taxation is kept under review as part of the Tax Strategy Group and Budgetary cycle. Any industry proposals will be considered as part of this process.

Funding and schemes are available for the haulage sector to support the transition to Zero Emission operations. The Zero Emission Heavy-Duty Vehicle (‘ZEHDV’) Purchase Grant Scheme supports and promotes the decarbonisation of the heavy-duty sector to transition to Zero Emission vehicles. The Scheme supports the purchase of new large commercial vehicles by bridging some of the price difference between conventional heavy-duty vehicles and Zero Emission vehicles, which offer environmental benefits.

With respect to Tolls, the Minister for Transport has responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned.

Therefore, matters relating to the day to day operations regarding national roads, including toll roads are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll bye-laws and to enter into agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended).