Dáil Éireann Debate, Tuesday - 22 October 2024
250. Deputy Paul Kehoe asked the Minister for Finance the amount of revenue generated from fuel taxation from 2019 to the present; the proportion of the overall tax take this comprises; the expected revenue from fuel taxation from 2024 to 2034; the proportion of the overall tax take this comprises, in tabular form; and if he will make a statement on the matter. [43174/24]
View answer251. Deputy Paul Kehoe asked the Minister for Finance the amount of taxes taken from fuel tax, VAT excise and carbon tax associated with petrol and diesel from 2019 to 2023, in tabular form; and if he will make a statement on the matter. [43175/24]
View answer252. Deputy Paul Kehoe asked the Minister for Finance the amount of projected taxes that will be taken from fuel tax, VAT excise and carbon tax associated with petrol from 2025 to 2034, in tabular form; and if he will make a statement on the matter. [43178/24]
View answer255. Deputy Paul Kehoe asked the Minister for Finance the amount of projected taxes that will be taken from fuel tax, VAT excise and carbon tax associated with petrol in 2024, in tabular form; and if he will make a statement on the matter. [43192/24]
View answerI propose to take Questions Nos. 250 to 252, inclusive, and 255 together.
I am advised by Revenue that the Excise Duty receipts collected in respect of Fuel Taxes in each of the past five years up to 2023 are published on the Revenue website at:
www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx .
The provisional receipts for the year to September 2024 are shown in Table 1:
Table 1 : Excise Duty Receipts: January – September 2024
|
Fuel Type |
Non-Carbon Component €m |
Carbon Component €m |
Total €m |
|
Diesel |
1,020.8 |
358.4 |
1,379.2 |
|
MGO |
20.0 |
101.0 |
121.0 |
|
Petrol |
394.5 |
93.6 |
488.1 |
|
Natural Gas |
- |
100.7 |
100.7 |
|
KERO |
- |
87.4 |
87.4 |
|
Other LPG |
- |
21.6 |
21.6 |
|
Solid Fuel |
- |
17.1 |
17.1 |
|
Fuel Oil |
0.1 |
1.4 |
1.5 |
|
Auto LPG |
0.1 |
0.1 |
0.2 |
|
Aviation Gasoline |
0.2 |
0.1 |
0.3 |
|
Total |
1,435.7 |
781.4 |
2,217.1 |
In relation to VAT, I am further advised by Revenue that traders are not required to separately identify the VAT yield generated from the supply of specific goods and services on their periodic VAT returns. Therefore, it is not possible to provide the VAT yield on all fuel and energy related products and services using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated over each year from 2019 and to the end of August 2024 by fuel type is provided in Table 2 below.
Table 2: Estimated VAT Yield by Commodity Type
|
2019 |
2020 |
2021 |
2022 |
2023 |
Jan-Aug 2024 |
|
|
Petrol |
276 |
195 |
231 |
322 |
318 |
241 |
|
Diesel |
294 |
257 |
334 |
423 |
370 |
259 |
|
Gas |
69 |
70 |
69 |
111 |
158 |
67 |
|
Kerosene |
43 |
67 |
108 |
90 |
75 |
45 |
|
MGO |
39 |
32 |
42 |
71 |
56 |
40 |
|
Solid Fuels |
30 |
31 |
47 |
57 |
77 |
56 |
|
LPG |
14 |
12 |
14 |
16 |
16 |
6 |
|
Total |
765 |
664 |
845 |
1,090 |
1,070 |
714 |
I am advised by Revenue that the proportion of the overall tax revenue generated from fuel taxation is shown in Table 3 below.
Table 3 : Proportion of Overall Tax Revenue Generated from Fuel Taxation
|
Year |
Revenue from Fuel Taxes €billion* |
Total Net Receipts €billion** |
Proportion of Net Receipts |
|
2019 |
3.4 |
58.8 |
5.7% |
|
2020 |
3.0 |
56.7 |
5.2% |
|
2021 |
3.4 |
68.1 |
5.0% |
|
2022 |
3.4 |
82.9 |
4.1% |
|
2023 |
3.6 |
87.8 |
4.1% |
|
2024*** |
2.7 |
67.7 |
4.0% |
*This includes estimated VAT
** Total Net Receipts are taken from Revenue’s Annual Report
*** Provisional YTD August 2024
I am advised by Revenue that the projected receipts from VAT and Fuel Taxes associated with petrol in 2024 are shown table 4 below.
Table 4 : Projected 2024 Petrol Receipts
|
Tax Type |
€ millions |
|
Mineral Oil Tax (Non-Carbon Component) |
523 |
|
Mineral Oil Tax (Carbon Component ) |
122 |
|
VAT |
360 |
|
Total |
1,005 |
With regard to multiannual projections, as the Deputy will be aware in July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government. The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies and is available online: www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.
Building on this work, my Department published a further paper in September 2024 focussing on carbon tax ; Carbon Tax Projected Exchequer Revenue Estimates 2024-2030. This paper examines trends in carbon tax exchequer yields in Ireland over the last decade, and provides forward projected estimates of carbon tax yields over the next six years to 2030, in order to provide timely analysis of estimated trends and levels of expected exchequer receipts from carbon taxation. This paper is also available on my Department's website: www.gov.ie/en/publication/8e2d0-carbon-tax-projected-exchequer-revenue-estimates-2024-2030/.
It should be noted that both papers contain analysis which is a point in time exercise and forecasted revenue is estimated using forward projected estimates of energy use from the Environmental Protection Agency (EPA) and Sustainable Energy Authority of Ireland (SEAI). Any changes to projected energy use will impact forecasted revenue.
