Claire Kerrane (Roscommon-Galway, Sinn Fein)
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227. To ask the Minister for Finance if he will advise on rates of heavy oil tax from 2020 to the end of 2024 including rate changes through each of these years; if he will provide a breakdown of the carbon and non-carbon components for each rate; if he will provide this information, in tabular form; and if he will make a statement on the matter. [32382/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Ireland’s taxation 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 covering liquid fuels are transposed into national law in Finance Act 1999 (as amended). Finance Act 1999 provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels. Other, non-specified liquids that are used as fuels are also liable to MOT. MOT is comprised of a carbon component and a non-carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. It is important to note that both components of MOT are excise.

MOT law specifies rates of taxation according to fuel type and use. Mineral oils are categorised into light oils, which include petrol and aviation gasoline, and heavy oils which include auto-diesel, jet fuel, heating kerosene, fuel oil and marked gas oil (MGO)/green diesel. Standard rates of MOT apply to fuels used for propellant purposes and reduced rates apply to fuels used for other purposes such as heating. In addition, MOT law provides for certain exemptions and reliefs for fuels used for particular purposes.

As the Deputy will be aware, my predecessor introduced legislation in Finance Act 2020 to provide for annual increases in the carbon component of MOT up to 2030. This means that carbon tax rates on auto-fuels increase on Budget night each year, and on the remaining fuels, predominantly used for heating, from 1 May of the following year to coincide with the end of the heating period. The Deputy will also be aware that certain MOT rates were reduced last year in response to the global energy crisis. I brought forward legislation earlier this year to provide for a three-stage restoration of these MOT rates and the first stage impacted on 1 June.

I am advised by Revenue that current MOT rates, broken down by carbon and non-carbon components are published at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf. This information is updated shortly before changes to rates come into effect. Historic MOT rates are also published on the Revenue website and are available at www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/mineral-oil-tax.aspx. Future MOT rates, up to 2030, are set out in Finance Act 1999, as amended. MOT rates on heavy oils for the period 2020 to end 2024 are provided in the tables below. For completeness, rates for light oils have also been included.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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228. To ask the Minister for Finance whether consideration is being given to improving investments in Exchange Traded Funds and whether consideration is being given to changing the deemed disposal rules that exist for ETF investments; and if he will make a statement on the matter. [32398/23]

Michael McGrath (Cork South Central, Fianna Fail)
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On 6 April 2023, I published the Terms of Reference for a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. This review will look at a range of issues relevant to the funds sector including taxation in line with the recommendations of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.

The review will specifically examine the taxation regime for funds, life assurance policies and other related investment products, with the goal of simplification and harmonisation where possible; and to do so with a net revenue-raising or neutral mandate. Exchange Traded Funds (ETFs) are an important part of the funds landscape and will therefore be within the scope of this aspect of the review.

The Consultation Paper issued as part of this review was published on 22 June 2023 and is available at on our website. Responses to the Consultation Paper are due by 15 September 2023. I have sent a letter to all members of the Oireachtas highlighting the publication of the consultation paper.

While it would not be appropriate to presuppose any outcomes of the Review, I would encourage all stakeholders with an interest in matters relating to the funds sector, as well as in relation specifically to ETFs to fully engage with the consultation process. The Review Team will report to me by summer 2024.