Dáil Éireann Debate, Wednesday - 15 April 2026
204. Deputy William Aird asked the Tánaiste and Minister for Finance if consideration has been given to expanding the existing farm diesel carbon tax relief to include agricultural contractors, and to simplify the scheme to improve uptake; and if he will make a statement on the matter. [27534/26]
Amharc ar fhreagraSection 664A Taxes Consolidation Act 1997(TCA) provides additional relief for farmers in respect of an increase in the carbon tax on farm diesel. In addition to being able to claim a tax deduction for expenditure incurred on farm diesel (including any carbon tax charged in respect of the diesel), in computing their taxable farming profits, farmers may claim a further deduction for farm diesel in an amount equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
The present position is that agricultural contractors are not entitled to avail of this additional relief from increases in the carbon tax on farm diesel. The Department of Agriculture, Food and the Marine will have the inaugural meeting of the Farm Contracting Working Group in April and officials from my Department will attend in relation to taxation measures. Decisions regarding tax incentives and reliefs, whether in respect of the introduction of new measures or the amendment of existing measures, are normally made in the context of the Budget and Finance Bill process.
As the Deputy will be aware the Government recently announced a €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs.
Under this Scheme, Farmers and agricultural contractors will benefit from a support rate equivalent to approximately 20 cents per litre of MGO (marked gas oil) used based on verified fuel consumption in 2025.
As the Deputy will appreciate, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
