Thomas Gould
Ceist:22. Deputy Thomas Gould asked the Tánaiste and Minister for Finance whether he intends to introduce a tax on private jets. [43418/26]
Amharc ar fhreagraThursday, 25 June 2026
Ceisteanna (22)
Freagraí scríofa
The supply of aircraft in the State is subject to Value Added Tax (VAT), and the fuel used in aircraft is also subject to VAT along with Mineral Oil Tax (MOT).
The VAT treatment of goods and services is subject to EU VAT law, with which Irish VAT law is obliged to comply. In accordance with the EU VAT Directive, the supply of aircraft (including private jets) is generally subject to the standard rate of VAT (which in Ireland is currently 23 per cent), but the zero rate applies where the aircraft is used or to be used by a transport undertaking operating for reward chiefly on international routes (e.g. an international airline). In general, where a person leases a private jet, that lease is liable to VAT at the standard rate.
Under the VAT Directive, various VAT rates apply to aviation fuels. The zero rate applies to fuels for aircraft used by international airlines. The standard rate of VAT applies to fuels supplied for other purposes or customers, except in the case of aviation kerosene/jet fuel where Ireland retains its historic application of the reduced rate of VAT (currently 13.5 per cent).
Ireland’s excise duty treatment of aviation fuel is governed by European Union law as set out in the Energy Tax Directive. Under national law, liquid fuels are subject to excise duty in the form of Mineral Oil Tax.
Jet fuel, also referred to as jet kerosene, is a heavy oil that is the most commonly used aviation fuel. It currently attracts a Mineral Oil Tax rate of €371.85 per 1,000 litres. Aviation gasoline, which is described as a light oil for Mineral Oil Tax purposes, is less commonly used in aviation and currently attracts a rate of €502.88 per 1,000 litres.
In line with the Energy Tax Directive, jet fuel used for commercial air navigation is fully exempted from Mineral Oil Tax. Aviation gasoline used for commercial air navigation is partially relieved and is currently subject to an effective rate of €270.61 per 1,000 litres. Both the full Mineral Oil Tax exemption for jet fuel, and the partial Mineral Oil Tax exemption for aviation gasoline, apply to fuel used for domestic, intra-community and international flights.
The concept of a “private jet” is not encompassed in Mineral Oil Tax law, nor in the Energy Tax Directive, and the Mineral Oil Tax treatment of fuel used in an aircraft is not determined by the aircraft ownership. The applicable Mineral Oil Tax rate for fuel used in any aircraft, including privately owned, is determined by the fuel type and whether the aircraft is being used for commercial or private pleasure purposes.
The Energy Tax Directive provides that fuel used for non-commercial air navigation, or private pleasure flying, is mandatorily taxed.
For the purposes of Mineral Oil Tax, 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. Mineral Oil Tax 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.