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5 2005

Finance Act 2005

Chapter 2

Mineral Oil Tax

Rates of mineral oil tax.

64. The Finance Act 1999 is amended—

(a) with effect as on and from 1 April 2005, by substituting the following for Schedule 2 to that Act, as amended by section 48 of the Finance Act 2004 :

“SCHEDULE 2

Rates of Mineral Oil Tax

(With effect as on and from 1 April 2005)

Description of Mineral Oil

Rate of Tax

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

€14.78 per 1,000 litres

Other heavy oil

€47.36 per 1,000 litres

Liquefied Petroleum Gas:

Used as a propellant

€63.59 per 1,000 litres

Other liquefied petroleum gas

€20.86 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

”.

and

(b) with effect as on and from such day as the Minister may appoint by order under section 70 , by substituting the following for Schedule 2 (inserted by subsection (a)) to that Act:

“SCHEDULE 2

Rates of Mineral Oil Tax

Description of Mineral Oil

Rate of Tax

Light Oil:

Leaded petrol

€553.04 per 1,000 litres

Unleaded petrol with a maximum sulphur content of 10 milligrammes per kilogramme

€442.68 per 1,000 litres

Other unleaded petrol

€484.00 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 10 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

€14.78 per 1,000 litres

Other heavy oil

€47.36 per 1,000 litres

Liquefied Petroleum Gas:

Used as a propellant

€63.59 per 1,000 litres

Other liquefied petroleum gas

€20.86 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

Coal:

For business use

€4.18 per tonne

For other use

€8.36 per tonne

”.

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

65. Section 94 of the Finance Act 1999 is amended—

(a) in subsection (1):

(i) by substituting the following definition for the definition of “authorised warehousekeeper”:

“ ‘authorised warehousekeeper’ means a person authorised by the Commissioners under section 109 of the Finance Act 2001 to produce, process, hold, receive or dispatch mineral oil under a suspension arrangement;”,

(ii) by inserting the following definitions after the definition of “biomass”:

“ ‘business use’, subject to Article 11 of the Directive, means use by a business entity which independently carries out, in any place, the supply of goods and services;

‘charitable organisation’ means any body of persons or trust established for charitable purposes;

‘coal’ includes lignite and solid fuels manufactured from coal or lignite;”,

(iii) by substituting the following definition for the definition of “the Directive”:

“ ‘the Directive’ means Council Directive No. 2003/96/EC of 27 October 20031 ;”,

(iv) by inserting the following definition after the definition of “the Directive”:

“ ‘dual use’ means use both as a heating fuel and for purposes other than as a motor fuel and heating fuel and includes use for chemical reduction and in electrolytic and metallurgical processes;”,

(v) by inserting the following definition after the definition of “dumper”:

“ ‘energy intensive business’ means any business entity where either the purchases of energy products and electricity amount to at least 3 per cent of the production value, or the mineral oil tax payable amounts to at least 0.5 per cent of the added value;”,

(vi) by inserting the following definition after the definition of “glasshouse”:

“ ‘greenhouse gas emissions permit’ has the meaning assigned to it by Article 2(1) of the European Communities (Greenhouse Gas Emissions Trading) Regulations 2004 (S.I. No. 437 of 2004);”,

(vii) by inserting the following definition after the definition of “horticultural producer”:

“ ‘household’ means a premises used as a dwelling;”,

(viii) by substituting the following definition for the definition of “mineral oil”:

“ ‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, substitute fuel, coal and additives;”,

(ix) by inserting the following definition after the definition of “mineral oil”:

“ ‘mineralogical process’ means a process classified in the NACE nomenclature under code DI 26 ‘manufacture of other non-metallic mineral products’ in Council Regulation (EEC) No. 3037/90 of 9 October 19902 on the statistical classification of economic activities in the European Community;”,

and

(x) by substituting the following definition for the definition of “tax warehouse”:

“ ‘tax warehouse’ means a premises or place approved by the Commissioners under section 109 of the Finance Act 2001 where mineral oil is produced, processed, held, received or dispatched under a suspension arrangement by an authorised warehousekeeper in the course of business;”,

(b) by inserting the following subsections after subsection (2):

“(3) A word or expression that is used in this Chapter and which is also used in Part 2 of the Finance Act 2001 has, unless a meaning is assigned to it by subsection (1) or (2) or the contrary intention otherwise appears, the same meaning in this Chapter as it has in that Part.

(4) A word or expression that is used in this Chapter and which is also used in the Directive has, unless a meaning is assigned to it by subsection (1), (2) or (3) or the contrary intention otherwise appears, the same meaning in this Chapter as it has in the Directive.”.

Amendment of section 95 (charge of tax) of Finance Act 1999.

66. Section 95 of the Finance Act 1999 is amended—

(a) by substituting the following for subsection (2):

“(2) For the purposes of charging mineral oil tax on mineral oil other than coal the volume of mineral oil shall be ascertained at a temperature of 15° Celsius and in the manner specified by the Commissioners.”,

and

(b) by substituting the following for subsection (4):

“(4) Notwithstanding the generality of subsection (1), only mineral oil coming within the definition of “energy products” in Article 2.1 of the Directive, substitute fuel and additives shall be subject to mineral oil tax.”.

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

67. Section 100 of the Finance Act 1999 is amended—

(a) in subsection (1) by substituting the following for paragraph (m) (inserted by the Finance Act 2004 ):

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

(n) mineral oil present, at the time of importation into the State from another Member State, in the standard tank of a mechanically propelled vehicle, including a private pleasure craft, where such oil has not been released for use as a propellant but where such oil is permitted, under the laws in force in such Member State, to be used in such vehicle.”,

and

(b) by substituting, from such day as the Minister may appoint by order under section 70 , the following for subsections (2) and (3):

“(2) Without prejudice to subsection (1), and subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from mineral oil tax shall be granted in respect of coal which is shown to the satisfaction of the Commissioners to be intended for use or to have been used—

(a) for the generation of electricity,

(b) for combined heat and power generation,

(c) for agricultural, horticultural or piscicultural works, and in forestry,

(d) for dual use,

(e) for mineralogical processes,

(f) for household use,

(g) by a charitable organisation,

(h) as fuel for trains,

(i) by an energy intensive business which holds a greenhouse gas emissions permit.

(3) Without prejudice to subsections (1) and (2), and subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from mineral oil tax amounting to one-half of the chargeable rate shall be granted in respect of coal which is shown to the satisfaction of the Commissioners to be intended for use or to have been used by a business which is not an energy intensive business and which holds a greenhouse gas emissions permit.

(4) Where mineral oil is eligible for relief from tax under the provisions of subsection (1), (2) or (3) the relief may be granted by the Commissioners by means of remission or repayment of mineral oil tax.

(5)(a) Claims for remission or repayment under subsection (4) shall be made in such form as the Commissioners may direct and shall be in respect of coal delivered or other mineral oil used within a period of not less than one and not more than 6 calendar months.

(b) A repayment under subsection (4) 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.”.

Amendment of section 103 (presumptions in certain proceedings) of Finance Act 1999.

68. Section 103 of the Finance Act 1999 is amended in subsection (4) (inserted by section 95 of the Finance Act 2003 ) by substituting “50 milligrammes” for “350 milligrammes”.

Amendment of Chapter 1 (mineral oil tax) of Part 2 of Finance Act 1999.

69. —Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) by inserting the following after section 95:

“Liability to mineral oil tax on coal.

95A.—Liability to mineral oil tax on coal shall arise at the time such coal is the subject of final delivery, and shall be paid by the person to whom it is delivered.”,

and

(b) by inserting the following after section 101:

“Registration.

101A.—Every person who makes final delivery of coal, otherwise than to households or to charitable organisations, and every person who is liable to pay mineral oil tax on coal shall register for that purpose with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.”.

Commencement.

70. —With the exception of sections 64(a), 67(a) and 68 this Chapter comes into operation on such day as the Minister for Finance may appoint by order, and different days may be so appointed for different provisions or for different purposes.

1OJ No. L283 of 31 October 2003, p. 51

2OJ No. L293 of 24 October 1990, p. 1