TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 19 °C Wednesday 19 June, 2013

No plans for fuel tax cuts to help struggling motorists

The Department of Finance has said the price of petrol and diesel is outside of the Government’s control.

Image: Photocall Ireland!

IRELAND HAS NO plans to follow France in its decision to cut tax on oil products in order to lower fuel costs and provide a temporary reprieve to struggling motorists.

A spokesperson for the Department of Finance told TheJournal.ie that temporary tax changes will not be introduced to counteract the increase in fuel prices “as this would lead to a significant loss to the Exchequer”.

“Tax receipts from VAT, as with all receipts, are used to pay for vital public services such as health, education and social protection.”

French President Francois Hollande said the tax cut will be modest and temporary as the government seeks a more permanent solution for price regulation, reported Bloomberg. He wants to ease the pressure on consumers, providing them with extra cash in their pockets with an aim to reinvigorate the economy.

The Irish government has acknowledged the significant financial burden being posed by high fuel costs on families but said that the increase in the price of petrol is largely due to external factors, including exchange rates, as well as production and refining costs, and therefore outside of its control.

The spokesperson continued, “Indeed, Ireland, as with other countries, has experienced a significant increase in the cost of petrol and auto-diesel in recent years. The increase in fuel prices is an international phenomenon.”

The average price of auto-diesel in 2010 was €1.23 per litre. During this period increases in excise in Budget 2011 and in carbon tax in Budget 2012 raised excise on auto-diesel by just over 3.5 cents per litre (VAT inclusive).

According to Pumps.ie, this week’s average petrol price is about €1.63 but AA Ireland has warned that over the next week, prices could hit a record €1.70 per litre.

Speaking to RTÉ’s Morning Ireland this morning, Green Party leader Eamon Ryan said that although the idea would be popular with the public, there are better and more “clever” ways of tackling the issue.

He suggested putting any additional funds into the public transport system and the retro-fitting industry or ceasing VRT increases to encourage the use and purchase of more efficient vehicles.

Related: Prepare for a hike in petrol prices, warns AA Ireland>

  • Share on Facebook
  • Email this article
  •  

Read next:

Comments (59 Comments)

  • It’s going to lead to a significant loss to the exchequer when struggling businesses are pushed under and people have to go on the dole instead

    Reply
  • In France your also not ripped off with having to pay motor tax every year, you pay 10% motor tax when you purchase your car and every time you fill your car with petrol or diesel the motor tax is already included in the price at the pump. Ireland could learn a thing or two from them

    Reply
    • Yes abandoning the archaic practice of displaying tax discs would save millions on printing and posting out thousands of tax discs every year. It would also free up and save thousands of resource “hours” in county councils and Garda time. There are certainly more efficient ways of collecting road tax.

      Reply
    • Barry 23/08/12 #

      Glyn Carragher, nobody pays ROAD tax, you pay MOTOR Tax.

      Reply
    • HUGE difference Barry, I feel much better that I’m sure its MOTOR TAX. how come I don’t pay motor tax on my lawnmower or hedge cutter then? they have motors?

      Reply
    • Barry 23/08/12 #

      Bilbo Baggins, its called Motor Tax…you can’t try be smart all you want but read the renewal notice you get and its plain as day.

      Of course if you are dumb enough and if you plan on using your lawn mower or hedge trimmer as a form of motorized transport on the public road…you’ll need to speak to the Gardai. It only apply’s to such uses after all….but of course you are intelligent enough to know that right??

      Its an extremely common and incorrect assumption that people pay road tax and that this tax is then just used towards roads….this often gives many motorists the incorrect assumption that they are some how more entitled to be on roads then say a pedestrian or a cyclist.

      The reality is motorists pay motor tax which goes into a general fund like so many other tax’s and is then used to fund all sorts of services including health, education, government services etc.

      As a motorist I would have though people actually bother to actually read the name of the tax they pay each year, i know I do.

      Reply
    • mattoid 23/08/12 #

      Don’t be putting ideas in their head Bilbo

      Reply
    • @ Barry The only thing that motor tax or fuel tax are funding are our politicians pockets Time to wake up to the real world They keep telling you that taxes fund education, health and other and yet you keep hearing that all of the above are in serious trouble and badly in need of money And because it is called motor tax and is payed by motorists people have the right to assume something will be done about the roads in the country as they are in an appalling condition

      Reply
    • Barry, stop being so condescending troll please. If you don’t agree with their point fair enough, but why attack people personally?

      Reply
    • Barry I hope u don’t speak to people like that in real life, or you must be one lonely chappy. As you pointed out my motor would have to be used on the road to be eligible for motor tax, if you can’t see the irony there , I can’t help you.
      Also before you questions other people intelligence and ‘dumbness’ you should double check your own assumptions on where motor tax goes. It goes directly to county councils.

      Reply
    • You could include Insurance as well by a State owned company and make a profit like the traditional Companies do . Hundreds of millions.

      Reply
    • Jaysus. Easy there Barry. Dramatic much?! :)

      Reply
  • For every €20 you put in your car, €13 of it is tax…scandelous!

    Reply
  • Fuel goes up
    Then business closing goes up
    Then unemployment goes up
    Then numbers on the dole goes up
    Then tax goes up
    What a complete feck up !
    Simple economics Noonan

    Reply
  • cutting tax on fuel to improve spend in the economy for businesses would be too smart an idea for this government.

    Reply
  • rising prices means increased tax take , why don’t they just cap the amount of tax taken from fuel ? simples !

    Reply
  • Till they want more money and introduce more taxes on fuel!

    Reply
  • Even if they binned the so called carbon tax inflicted on us by those cabbage headed compost wallowers it would help, but doing the right thing for the people ain’t part of their mandate.

    Reply
  • Haha our government wouldn’t piss on us if we were on fire

    Gangsters the lot of them, if it doesn’t suit the government or make them more money they don’t give a flying monkey about us, sure we just keep voting them in anyway, why would they be fearful

    Reply
  • As long as they can continue living the good life they dont care about us mere mortals.

    No TD or Senator will go cold this Winter, so stuff the rest of ye!

    Reply
  • The price of fuel is indeed outside of our governments control. The excessive taxes they impose on this imported fuel is however not outside of their control. Unfortunately those who decide on the amount of taxes we will pay on our fuel are currently in receipt of wages in excess of €90,000 and are driven around by State cars. They eat in subsidised canteens and have shown a consistent disregard for the suffering of ordinary people in this country. Bread and Milk are delivered by truck. Trucks use diesel. The cost of basic foodstuffs will now have to increase. But then this is outside of the control of the government, sure let them eat cake.

    Reply
  • 23/08/12 #

    I detest the so called “leaders” of this country

    Reply
  • Still waiting for a day when this govt does something for its citizens that makes me go “fair play”. Just more promises of taxes. Keep it coming.

    Reply
  • It’s becoming more difficult to get money for petrol to get me to work!

    Reply
  • “Purchase more fuel efficient vehicles” – WE HAVE NO MONEY TO DO THAT!

    “Put any additional funds into the public transport system” – I LIVE IN THE MIDDLE OF THE BLOODY COUNTRYSIDE!

    Reply
    • well said ivan !! we also live in the countryside, we have 1…yes 1 bus a day if you go to town in the morning it takes you 3 hours to get there and we can’t get back untill 6 o’clock the nxt bus. so driving a car….but for how long ? just another cow to milk for the gov !

      Reply
  • TDs couldn’t give a rats arse about this issues as they get their mileage allowance and in some cases have the use of chauffeur driven state cars at our expense ….

    Reply
  • Slowly killing the goose that laid the golden eggs. This government is so out of touch with Production vs Production capability they are greedily gobbling up 85c (or thereabouts) on a litre of fuel and are blind to the knock on effect of less disposable income people can use elsewhere which would have far more reaching benefit to the wider economy.

    Reply
  • The government say any tax reduction on fuel would lead to a significant loss to the Exchequer, wait until they see hundreds more job losses because of fuel prices. It will cost the country alot more.

    Reply
  • Is this all part of the governments plan to make Ireland more competitive???

    Reply
  • I haven’t had a car in over two years, but I’m lucky that I can work at home, very few people can.
    The fuel increase will lead to a consumer products price increase too and less people being able to afford them, this includes food!

    Reply
  • I feel sick. slimey rats

    Reply
  • They want to get Ireland working again but are pricing us out of being able to get to work!
    My partner and I worked it out and it will now cost us 20e a week just to take our 7 year old to school in the car.
    PERSONALLY, I feel a better idea would have been to put a tax cap on fuel prices and increase duty on cigarettes and alcohol, luxuries! Don’t need smokes and beer to work and to get the country working!
    All they are doing is increasing the price of what is quite possibly the most important commodity in today’s society, petrol/diesel is used to transport the food we eat, the oil to warm our houses, public transport and, well, everything! Prices will only go up and up and all we can do about it is continue to bend over and take it!!

    Reply
    • I agree with you will, the scary thing is they have already taxed smokes and drink to the point of diminishing returns, so they will aim at the cash cows , The stuff you REALLY need. so petrol (oil) water, your house.

      Reply
  • This Conor faulkner chap from the AA or someone that has the ear of the media needs to organise a real out an out protest regards fuel and motor costs. nStart by orgainising an online protest to each TD in the government and then take it further. Noonan needs to be exiled as a enemy of the state. I would go further than exile but hey i’ll settle for that n

    Reply
    • I agree Chris but the only way to make this parasite government listen is to boycott the petrol pumps for a few days. No other form of protest would achive the desired effect of this. If we do nothing then expect to pay €2 per litre in a few months. We need to have a day or more of zero driving even if it means people stay home from work. A national day of protest I suppose. I know it’s easier said than done but it would be the only form or protest that would work. Protesting outside TD or government buildings will achive nothing. They only take note when they start to lose money.

      Reply
  • Four biodiesel plants are currently ‘mothballed’ in Ireland, while four pure plant oil production facilities have also ceased production.

    ”These production plants, which have a combined capacity of 60 million litres, were established with the assistance of grant aid, but are being squeezed out of production by cheaper imports of biofuels from outside the EU,” bioenergy specialist Barry Caslin told the conference.

    The reasons come down to the policies and the way they have been implemented.

    ”The decision not to make it a requirement on successful companies that were granted excise relief to source biofuel in Ireland under the MOTR support scheme announced in 2005 was the first major mistake,” said Barry.

    However, the introduction of the new biofuels obligation scheme from 1 January 2011 has been the death nail in the fledgling industry.
    Farmers Journal (May 2011)

    Reply
  • M Bowe 23/08/12 #

    How stupid does this minister think the people are. We all know that the 70% or s tax take on fuel costs are NOT external pressures and can be addresses by the government. When tiis country gonna demand we stop being blatantly LIED to.

    Reply
    • M bowe contact ur local politician and ask him or go on radio and demand the breakdown of the fuel costs and see how many govt officials come forward and tell u for the good of the country we all have to pay
      How about we all pay when expenses are paid by the politicians themselves- noonan doesn’t pay for his fuel or gas so he don’t give a toss about u or me

      Reply
  • Seriously thinking about LPG at this stage.

    Reply
  • See what happens when you vote in a real fake socialist rather than what we did and vote in a coalition with fake fake socialists! I was in Spain recently, petrol was 1.43.9

    Reply
    • Barry 23/08/12 #

      I wouldn’t hold up Spain as a shining example, look at the problems they have.,

      They have more white elephant building projects left to ruin then Ireland has…not to mention the higher unemployment and other issues. (Spains was 26.2% in July 2012 – Source: http://www.rte.ie/news/2012/0727/spain-denies-full-bailout-discussed-with-germany-business.html)

      Bottom line is yes we hate tax on fuel but the government needs money to run at the end of the day, if we cut tax on fuel then its going to have to be made up some where else or services such as health, education, roads improvements etc etc will have to be cut.

      Not saying its an ideal situation but that the reality of the situation, the money has to come from some where.

      Saying its cheaper in Spain is all fine and well but if you look at the problems such as unemployment you have to wounder if they had the extra tax income would they have a lower unemployment rate?

      Reply
    • Barry what do you think the unemployment rate in Ireland would be if those who have emigrated had decided to stay in Ireland?

      The Irish are ‘lucky’ in that we speak English and it makes it easier for our young people to emigrate to Australia/USA/Canda etc.

      Reply
    • @barry, no I wouldn’t be holding up Spain as a good fiscal example, like the article just making a comparison to another European partner

      Reply
  • 72% they take between excise duty, VAT and various carbon taxes.

    Reply
  • ““as this would lead to a significant loss to the Exchequer”

    That is a basic misunderstanding of Math. If the price goes up, and you lower the tax in line, that means you take in the same amount, not less. What idiots

    ‎”but said that the increase in the price of petrol is largely due to external factors”

    Incorrect. For every cent the vendor pays for fuel, the government adds 2.73 cent on top. That means that 66% of the price increase is the governments fault.

    Reply
  • Why was my comment yesterday deleted?

    Reply

Add New Comment