Dáil Éireann Debate, Tuesday - 12 May 2026
454. Deputy Colm Burke asked the Tánaiste and Minister for Finance the action being taken to control the transporting of coal from Northern Ireland to the South, where said coal is being sold for cash without the payment of any tax; and if he will make a statement on the matter. [34174/26]
Amharc ar fhreagraSolid Fuel Carbon Tax (SFCT) applies to the first supply in the State of coal, peat, and peat products. While SFCT is an excise duty, solid fuels are not part of the range of goods – tobacco, alcohol and oils – for which there is a harmonised EU-wide excise control and movement regime. Therefore, in accordance with the Treaty on the Functioning of the European Union, Revenue may not apply any barriers to the free movement of solid fuels into the State from other Member States or from Northern Ireland (NI).
The movement of solid fuel across the border from Northern Ireland (NI) does not generate a liability to SFCT nor does the physical presence of solid fuel in the State. It is not until solid fuel is first supplied within the State that SFCT becomes liable. This means that a NI supplier who supplies coal to retailers or wholesalers in the State is not liable for SFCT. When those retailers or wholesalers supply the fuel onwards within the State, i.e. make a first supply in the State, they are liable for SFCT, and VAT, and must register with Revenue to account for and pay relevant taxes. Where a NI-based supplier supplies solid fuel directly to consumers in the State, the supplier is liable to SFCT and must register with Revenue. Approximately 5% of SFCT registrations are for NI-based suppliers.
SFCT and VAT are collected on a self-assessment basis and compliance is enforced using the full range of compliance interventions and enforcement provisions for self-assessed taxes. I am advised by Revenue that it addresses non-compliance with SFCT and VAT law on a risk basis and that SFCT and VAT issues may be examined as part of cross-taxhead checks, and Revenue’s outdoor and uniformed staff integrate checks into their wider field operations and visits to fuel retailers. Compliance interventions, particularly those conducted in the border counties, have enhanced Revenue’s understanding of the solid fuel supply chain and have informed risk and intelligence driven compliance activities. Where there are grounds to believe that tax due has not been declared and/or paid, Revenue investigates fully and collects the unpaid tax, together with any interest or penalties due. Members of the public and solid fuel traders who suspect, or have evidence, of tax evasion should report any information to Revenue by contacting their local Revenue Office or Revenue’s Confidential Freephone at1800 295 295. Reports can also be made online by submitting a Tax Evasion Report Form which can be found at https://www.revenue.ie/en/corporate/assist-us/reporting-shadow-economy-activity/reporting.aspx. I am assured that combatting the risk of potential SFCT/VAT evasion will continue to be a priority for Revenue, and cooperation and collaboration with other State agencies and with HM Revenue and Customs in NI will continue to play an important role in this respect.
Separate to tax law, the State's regulatory regime underpinning environmental standards for solid fuels, empowers Local Authorities to enforce legal provisions aimed at preventing the marketing, distribution, sale and use of solid fuels, such as smoky coal, which do not meet the standards that apply within the State. The Air Pollution Act 1987 (Solid Fuels) Regulations 2022 (S.I. No. 529/2022) place specific obligations on anyone transporting solid fuels, including a requirement that accompanying documentation detailing the fuel’s source, destination and compliance with environmental standards are available for inspection by Local Authority staff. Local Authorities emphasise that public cooperation is essential to protecting air quality and outline that if anyone has information on the transportation or sale of smoky coal, they should contact the relevant Local Authority with details such as:
• Vehicle description and registration number,
• Shop or premises address,
• Date and time of the incident.
