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8 2004

Finance Act 2004

PART 2

Excise

Amendment of Chapter 1 (alcohol products tax) of Part 2 of Finance Act 2003, etc.

43. —(1) Chapter 1 of Part 2 of the Finance Act 2003 is amended—

(a) in subsection (1) of section 73 by substituting the following for the definition of “spirits”:

“ ‘spirits’ means any product which exceeds 1.2% vol and which is—

(a) distilled ethyl alcohol,

(b) an alcoholic beverage the full alcohol content of which is the result of a process of distillation,

(c) any other product falling within CN Code 2207 or 2208, even when such product forms part of a product which is not an alcohol product, or

(d) any beverage exceeding 22% vol,

and includes any such product which contains a nonalcoholic product, whether in solution or not;”,

(b) in section 75 by substituting the following for subsection (2):

“(2) In the case of spirits produced in the State by a process of distillation, where the quantity of spirits produced is less than the quantity capable of being produced from the wort or wash used in such process, the Commissioners may require that, instead of a charge on the quantity of spirits produced, alcohol products tax be charged on the quantity capable of being produced from such wort or wash on the assumption that one litre of alcohol is produced for every 8.8 degrees of attenuation, that is to say, for every 8.8 degrees of difference between the highest gravity of the wort and the lowest gravity of the wash before distillation.

(3) In calculating the quantity of spirits to be charged under subsection (2), allowance may be made for losses covered by section 106 of the Finance Act 2001 .”,

and

(c) in section 77 by substituting the following for paragraph (f):

“(f) in the case of wine, beer, or other fermented beverage the alcoholic content of which is entirely of fermented origin, to have been produced solely by a private individual in a private premises for consumption by the producer or by the family or guests of such producer, and not to have been produced or supplied for consideration,

(g) to be intended for use or to have been used for medical purposes in hospitals and pharmacies,

(h) to be intended for use or to have been used in an industrial process provided that the final product does not contain alcohol,

(i) to be intended for use or to have been used in the manufacture of a component which is not subject to alcohol products tax, or

(j) to be intended for use or to have been used in the manufacture of an oral hygiene product.”.

(2) Schedule 2 to the Finance Act 2003 is amended by substituting “Intermediate Beverages” for “Intermediate Products”.

Amendment of section 93 (offences in relation to keeping, selling or delivering of unexcised spirits) of Finance Act 2003.

44. —(1) Section 93 of the Finance Act 2003 is amended in subsection (1) by substituting the following for the definition of “spirits”:

“ ‘spirits’ has the same meaning as it has in section 73(1) (as amended by the Finance Act 2004) of the Finance Act 2003 ;”.

(2) Subsection (1) comes into operation on such day as the definition of “spirits” in section 73 (1) of the Finance Act 2003 comes into operation by virtue of an order under section 86 of that Act and to the extent provided for in such order.

Tobacco products.

45. —(1) In this section and in Schedule 2

“Act of 1977” means the Finance (Excise Duty on Tobacco Products) Act 1977 ;

“cigarettes”, “cigars”, “fine-cut tobacco for the rolling of cigarettes” and “smoking tobacco” have the same meaning as they have in the Act of 1977, as amended by section 86 of the Finance Act 1997 and by section 94 of the Finance Act 2002 .

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in Schedule 3 to the Finance Act 2003 , be charged, levied and paid, as on and from 4 December 2003 at the several rates specified in Schedule 2.

Amendment of section 104 (reliefs) of Finance Act 2001.

46. Section 104 of the Finance Act 2001 is amended by inserting the following after subsection (3):

“(4) (a) Where, as allowed under the terms of the treaty of accession which applies to a Member State, such Member State applies to any tobacco product a rate of excise duty which is less than the minimum rate stipulated for that product in either Council Directive 92/79/EEC of 19 October 19921 or Council Directive 92/80/EEC of 19 October 19922 , the Minister for Finance may by order provide that—

(i) subsection (2)(a) shall not apply, and

(ii) the quantitative limits set down in such order shall apply,

to such tobacco products which, in the circumstances outlined in that subsection, have been acquired in such Member State and transported into the State.

(b) The Minister may by order amend or revoke an order made under paragraph (a).

(c) An order under this subsection shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next 21 sitting days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

Amendment of section 124A (administrative penalties) of Finance Act 2001.

47. —Section 124A (inserted by the Finance Act 2003 ) of the Finance Act 2001 is amended by substituting the following for subsection (1):

“(1) An authorised warehousekeeper who contravenes or fails to comply with—

(a) any condition imposed on him or her under section 109(5), or

(b) any requirement imposed on him or her under—

(i) this Part,

(ii) the Finance (Excise Duty on Tobacco Products) Act 1977 ,

(iii) Chapter 1 of Part 2 of the Finance Act 1999 ,

(iv) Chapter 1 of Part 2 of the Finance Act 2003 , or

(v) any regulation made under the provisions referred to in subparagraphs (i) to (iv),

is liable to a penalty of €1,500 for each such contravention or failure.”.

Rates of mineral oil tax.

48. The Finance Act 1999 is amended by substituting the following for Schedule 2 to that Act, as amended by section 91 of the Finance Act 2003 :

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 4 December 2003)

Description of Mineral Oil

Rate of Duty

Light Oil:

Leaded petrol

€553.04 per 1,000 litres

Unleaded petrol

€442.68 per 1,000 litres

Super unleaded petrol

€547.79 per 1,000 litres

Aviation gasoline

€276.52 per 1,000 litres

Heavy Oil:

Used as a propellant with a maximum sulphur content of 50 milligrammes per kilogramme

€368.05 per 1,000 litres

Other heavy oil used as a propellant

€420.44 per 1,000 litres

Kerosene used other than as a propellant

€31.74 per 1,000 litres

Fuel oil

€13.45 per 1,000 litres

Other heavy oil

€47.36 per 1,000 litres

Liquefied Petroleum Gas:

Used as a propellant

€53.01 per 1,000 litres

Other liquefied petroleum gas

€18.15 per 1,000 litres

Substitute Fuel:

Used as a propellant

€368.05 per 1,000 litres

Other substitute fuel

€47.36 per 1,000 litres

”.

Amendment of section 94 (interpretation) of Finance Act 1999.

49. Section 94 of the Finance Act 1999 is amended in subsection (1)—

(a) by substituting the following for the definition of “biofuel”:

“ ‘biofuel’ means any mineral oil which is produced from biomass;”,

and

(b) by inserting the following definition after the definition of “biofuel”;

“ ‘biomass’ means the biodegradable fraction of products, waste and residues from agriculture (including vegetal and animal substances), forestry and related industries, as well as the biodegradable fraction of industrial and municipal waste;”.

Biofuel pilot projects.

50. —Chapter 1 of Part 2 of the Finance Act 1999 is amended by inserting the following after section 98:

“98A.—(1) Where the Minister, after consultation with the Minister for Communications, Marine and Natural Resources, is satisfied that any biofuel is essential to a pilot project undertaken in the State which is designed either—

(a) to produce biofuel, or

(b) to test the technical viability of biofuel for use as motor fuel,

a relief from mineral oil tax shall, subject to such conditions as the Commissioners may impose, apply to such biofuel.

(2) An application for relief under subsection (1) shall be made in writing to the Minister on or before 31 December 2007 and the applicant shall—

(a) furnish such information as the Minister may reasonably require,

(b) show to the satisfaction of the Minister that such applicant can provide a suitable premises and the equipment necessary for the project concerned.

(3) Relief under subsection (1) may, as determined by the Minister, be restricted to—

(a) a specified quantity of biofuel, and

(b) a specified period in which such biofuel may be produced or tested,

and such quantity or period may be increased or extended by the Minister following consultation with the Minister for Communications, Marine and Natural Resources.

(4) Relief under subsection (1) may be withdrawn where any condition referred to in that subsection has not been complied with and where the Minister so thinks fit. The Commissioners may transmit to the Minister any information relevant to such non-compliance.

(5) Relief under subsection (1) may be granted by the Commissioners by means of remission or repayment.

(6)  (a) Claims for repayment under subsection (5) shall be in such form as the Commissioners may direct and shall be in respect of biofuel produced or tested, as the case may be, within a period of not less than one and not more than 6 calendar months.

(b) A repayment under subsection (5) may not be made unless the claim is made within 4 months following the end of each such period or within such longer period as the Commissioners may, in any particular case, allow.

(7) This section comes into operation on such day as the Minister may appoint by order.”.

Amendment of section 100 (reliefs from mineral oil tax for certain mineral oils) of Finance Act 1999.

51. Section 100 of the Finance Act 1999 is amended in subsection (1) by substituting the following for paragraph (l) (inserted by the Finance Act 2001 ):

“(l) mineral oil used by a manufacturer in the production of mineral oil;

(m) heavy oil which is intended for use or which has been used in aircraft engines during testing and maintenance of such engines.”.

Amendment of section 6 of Roads Act 1920.

52. —(1) Section 6 of the Roads Act 1920 (as amended by section 131 of the Finance Act 1992 ) is amended by deleting subsection (2).

(2) This section comes into operation on such day as the Minister for Finance may appoint by order.

Amendment of section 141 (regulations) of Finance Act 1992.

53. —(1) Section 141 of the Finance Act 1992 is amended—

(a) in subsection (2)—

(i) by deleting paragraph (d), and

(ii) by substituting “subsections (7) and (11)” for “subsections (7), (11) and (15)” in paragraph (s) (inserted by section 74 of the Finance Act 1996 ),

and

(b) in subsection (3) (inserted by section 56(b) of the Finance Act 1993 ) by substituting “other than subsections (6), (7) and (11)” for “other than subsections (6), (7), (11) and (15)”.

(2) Subsection (1)(a)(i) comes into operation on such day as the Minister for Finance by order appoints.

1 OJ No. L316, 31.12.1992, p.8

2 OJ No. L316, 31.12.1992, p.10