There are a number of issues that the Government are actively endeavouring to advance to provide assistance and certainty to people when it comes to energy, including auto fuels, while also being honest with people that there is no Government in the world that can absorb all of the impact of a global energy shock.
The Government has already temporarily reduced the Mineral Oil Tax applying to petrol, auto diesel and Marked Gas Oil (MGO). Inclusive of the reduction in the NORA levy, these changes save consumers and businesses:
• 27 cent per litre of petrol,
• 32 cent per litre of auto diesel, and
• 7.4 cent per litre of MGO.
These temporary reductions were due to expire on 31 August but were extended in full until 31 October with a phased restoration to pre-reduction levels due to take place between 1 November and 28 February 2027.
I have already signalled my intention to further examine these measures. Policy options in respect of support measures will have due regard to the overall budgetary position as well as EU legislative frameworks.
There are already a number of measures in place to assist commuters.
For example, to encourage the uptake of more sustainable and environmentally friendly transport options, persons commuting to work can already avail of the TaxSaver scheme in respect of public transport; and the cycle to work scheme.
Furthermore, employees may also claim a tax deduction in respect of:
(a) the cost of travelling expenses necessarily incurred in the performance of the duties of their employment or office; and
(b) the cost of other expenses incurred wholly, exclusively and necessarily in the performance of the duties of their employment.
However, these deductions do not ordinarily include the cost of travelling to and from a principal place of work.
As with all proposals for the introduction of new tax measures or the amendment of existing tax reliefs, the proposal should be assessed in accordance with the Department of Finance Tax Expenditure Guidelines. The guidelines make clear the importance that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. 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.
