Dáil Éireann Debate, Thursday - 14 May 2026
250. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance further to Parliamentary Question No. 412 of 28 April 2026, if he sought flexibility from the EU in relation to the ETD provision to ensure the private jet did not benefit from emergency excise cuts, as it did for other measures; and, if not, the reason for not seeking that flexibility; and if he will make a statement on the matter. [35834/26]
Amharc ar fhreagraIreland’s excise duty treatment of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). ETD provisions on liquid fuels are transposed into national law in Finance Act 1999 (as amended) which provides for the application of Mineral Oil Tax (MOT), to liquid fuels.
The ETD prescribes that in addition to adhering to minimum rates, the excise duty rate on a particular fuel type used for propellant purposes must be consistent across all propellant uses for that fuel. This means that the same MOT rate must apply to heavy oil, whether it is used as a propellant in motor vehicles, in aircraft or in waterborne vessels. Ireland has no discretion in this regard and a change to the MOT rate on auto-diesel must also be applied to the MOT rate on heavy oil used in aircraft (jet fuel). As a result of the recent rate cuts, auto-diesel and jet fuel are now both subject to an MOT rate of €371.85 per 1,000 litres.
The private pleasure flying rate on aviation gasoline, which is much less commonly used than aviation kerosene/jet fuel, is currently €502.88 per 1,000 litres. Current and historical MOT rates are published on Revenue’s website at: www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf
In line with the ETD, jet fuel used for commercial air navigation is fully exempted from MOT.
The concept of a “private jet” is not encompassed in MOT law, nor in the ETD, and the MOT treatment of fuel used in a private jet is not determined by the aircraft ownership. The applicable MOT rate for fuel used in any aircraft, including a privately owned jet, is determined by the fuel type and whether the aircraft is being used for commercial or private pleasure purposes.
The ETD provides that fuel used for non-commercial air navigation, or private pleasure flying, is mandatorily taxed. For the purposes of MOT, commercial air navigation is distinguished from private pleasure flying by reference to definitions set out in law. Commercial use of an aircraft includes the carriage of passengers or goods, the supply of services for consideration, and for the purposes of public authorities.
MOT applies in full to fuel used for private pleasure flying, which includes the use of an aircraft by its owner, or the natural or legal person who enjoys its use either through hire or through any other means, for other than commercial purposes.
