The increase in the CO2 tax will negate the reduction in excise duties on agricultural diesel, says Sinn Féin

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The government’s excise duty cut on agricultural diesel will be reversed just seven weeks after it was introduced, said Matt Carthy, Sinn Féin’s agriculture spokesman.

In March, the government lowered the excise duty on agricultural diesel from €138.17 to €120.55 per 1,000 liters or 2 cents per litre.

But Carthy said the excise tax’s CO2 control on fuel will increase on May 1 – bringing the fee back to €138.17.

“The 2 cent per liter excise duty reduction on agridiesel was minimal and insufficient. But farmers and contractors will be amazed to learn that the reduction will be reversed after just seven weeks when the carbon tax hike goes into effect on January 1st.

Carthy said this had been endorsed by Minister Paschal Donohoe on the Oireachtas Finance Committee.

Minister Donohoe said he conceded that the excise duty on agricultural diesel would return to March 9 levels in May and then rise further to €158.50 in September when the temporary measure expires.

“These numbers are not influenced by the criminal Russian invasion of Ukraine, international factors or other global influences – this is the money the government is asking for agricultural diesel and they could and should reduce it.

“Essentially, farmers and contractors have minimal fuel savings for seven weeks at a time when operating costs are marginalizing them,” he said.

Carthy told the Oireachtas Finance Committee that he had also asked for clarification from Minister Donohoe that the review of the status of agricultural contractors in relation to carbon tax rebates was finally underway.

“Currently, farmers can claim a discount on the CO2 tax if they have sufficient income. However, the same rule does not apply to contractors, even though they carry out agricultural work.

“Contractors have no choice but to pass the fee on to their customers – effectively making it an additional cost to farmers.

“The Treasury has promised a review for 2019, which the minister has repeatedly postponed.

“The Minister has now confirmed that it is underway and intends to complete the pre-Budget exercise, but would not commit to frontloading any action in the Budget resulting from this review if pressured.

“There must be no further delays. In times of rising input costs, farmers need support. Such support must come through a reduction in the carbon tax for those doing essential farm work for which there is no alternative fuel.”

https://www.independent.ie/business/farming/news/farming-news/carbon-tax-hike-will-wipe-out-cut-to-agri-diesel-excise-reduction-says-sinn-fein-41544286.html The increase in the CO2 tax will negate the reduction in excise duties on agricultural diesel, says Sinn Féin

Fry Electronics Team

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