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In this release we calculated the average effective carbon rates (ECRs) of fossil fuels in different sectors of the Irish economy.
The average effective carbon rate of a fuel is the amount of energy tax paid per tonne of carbon dioxide emitted through combustion of the fuel. Energy taxes include excise duty on fuels, carbon tax, electricity tax, the National Oil Reserves Agency (NORA) levy, the Public Service Obligation (PSO) levy and emission permit purchases under the EU Emissions Trading Scheme (EU ETS). These taxes are included as energy taxes in the CSO Environment Taxes release. VAT was not included in the calculation of effective carbon rates.
There were changes to many of these energy tax rates in 2022. These are outlined in the next section.
The average effective carbon rate was calculated using net receipts and excise volumes published by Revenue wherever possible. When net receipts or excise volumes for a specific fuel or sector were not available, information on energy tax rates and reliefs was used in conjunction with energy use statistics from the SEAI Energy Balances to estimate receipts. Emissions were estimated from excise volumes or Energy Balance statistics by applying emission factors (published by the SEAI) to fuel consumption.
In this release, ECRs cover carbon dioxide emissions from fuel combustion only; other greenhouse gases and emissions from other sources are not included.
The OECD maintains a database of national energy taxes called the Taxing Energy Use database and uses it to report effective carbon rates for different sectors and fuels in OECD countries. We used similar concepts to the OECD for this release.
The Excise duty rates on mineral oils published by Revenue include a carbon component, which is also referred to as the carbon tax. The Carbon tax rate is directly related to the amount of carbon dioxide emitted through combustion of the fuel while the non-carbon component of the Excise duty rate depends on whether the fuel is used for transport, industry or heating. The Solid Fuel Carbon Tax (SFCT) applies to coal and peat and the Natural Gas Carbon Tax (NGCT) applies to natural gas. There are a number of rate reductions and exemptions on Excise duty and Carbon tax, such as the exemptions for fuel used in international aviation, maritime transport and electricity generation.
In 2022, a temporary Excise rate reduction on petrol, diesel, and marked gas oil was introduced in response to rises in energy prices. Carbon tax on all fuels increased from €33.50 per tonne to €41 per tonne in 2022.
Electricity tax is an Excise tax paid by business and non-business consumers. There is no Electricity tax due on household use of electricity. All electricity consumers pay the PSO levy, which is used to subsidise electricity generation.
In the final quarter of 2022, the PSO Levy was negative, meaning that instead of paying a levy on their electricity bills, consumers received a payment.
The NORA Levy is charged on oil products such as petrol, road diesel and kerosene. It does not apply on fuel used for international aviation or maritime transport.
In October 2022, the NORA Levy was temporarily reduced from 2c per litre to zero.
The EU Emissions Trading Scheme commenced in 2005. An emission permit allows the holder to emit one tonne of carbon dioxide. Major emitters of greenhouse gases may be provided with free allowances of emission permits. They surrender a quantity of permits equal to their verified carbon dioxide emissions each year. If the free allowances do not cover their emissions they must purchase further permits at auction or on the open market. Stationary installations from sectors including electricity generation, manufacturing and services participate in the EU-ETS. Airline operators were included in the EU-ETS in 2012. Further information can be found on the Environmental Protection Agency's website. In this release we estimated the average annual cost of emitting a tonne of carbon dioxide as the difference between the free allocation and the verified EU ETS emissions in a given year, multiplied by the average annual auction price.
In 2022, the average auction price in the EU-ETS increased from €53 per tonne of carbon dioxide to €79 per tonne of carbon dioxide.
We calculated the average effective carbon rate for petrol, road diesel and road LPG using net receipts and fuel excise volumes published by Revenue. The taxes that applied to road transport fuels were Excise duty, Carbon tax and the NORA Levy.
We included diesel (charged at the rate of marked gas oil) and electricity under rail transport fuels. Excise duty and Carbon tax were charged on diesel, while electricity tax and the PSO levy were charged on electricity. Electricity emissions were calculated using the CSO Business Energy Use (BEU) survey data on energy use and SEAI electricity emission factors.
Aviation gasoline and jet kerosene are the main aviation fuels. Aviation gasoline for private use is subject to the same excise duty rate as petrol, however a partial excise repayment is available on aviation gasoline for commercial use. Aviation gasoline volumes and partial excise repayment amounts were obtained from Revenue.
Jet kerosene for commercial domestic and international use is exempt from Excise duty, Carbon tax and the NORA levy. The exemption for international use is included in the EU Energy Taxation Directive, which permits taxation on jet kerosene used for domestic flights and for international flights between member states with bilateral agreements to impose taxes. Jet kerosene used on flights within the EEA is covered in the EU-ETS and requires emission permits. Jet kerosene consumption was obtained from the SEAI Energy Balance. No Excise tax was applied to international consumption. We applied the Excise duty and Carbon tax rate on heavy oil for air navigation to a small proportion of domestic use of jet kerosene to estimate potential tax receipts from private use. ECR calculations for jet kerosene included estimates of EU-ETS permit purchases by Irish resident airlines for flights originating in Ireland.
Marine fuel for commercial use is exempt from Excise duty, Carbon tax and the NORA Levy. Fuel use for private pleasure navigation is subject to Excise duty and Carbon tax at the same rate as road diesel. We applied this rate to a proportion of domestic use of marine diesel to obtain an estimate of tax receipts from fuel use in privately owned boats.
Fuels used for electricity generation (excluding in combined heat and power plants), where such electricity is either subject to Electricity tax or is supplied for consumption outside the State, are exempt from Excise duty and Carbon tax. Fuels used for electricity generation in high efficiency combined heat and power (CHP) plants and in installations covered by greenhouse gas permits are also exempt from Carbon tax. The electricity generation sector instead comes under the EU-ETS. Between 2005 and 2012, power plants were provided with free allowances which covered a large majority of their emissions, or exceeded them. Since 2013 the electricity generation sector has received no further free allocation of emission permits.
We calculated the annual cost of emissions permits as the average annual EU-ETS carbon price multiplied by the difference between any annual free allocation to power plants and annual emissions of power plants covered by the EU-ETS.
Emissions included under the EU-ETS are largely exempt from Carbon tax. Industry sector purchases of EU-ETS emission permits were estimated as the average annual EU-ETS carbon price multiplied by the difference between the annual free allocation to manufacturing plants in the EU-ETS and their annual emissions. Excise duty, Carbon tax and NORA Levy receipts from the Industry sector were estimated using energy use data from the SEAI Energy Balance along with information on tax rates and reliefs.
Services sector purchases of ETS emission permits were estimated as the average annual EU-ETS carbon price multiplied by the difference between the annual free allocation to Services sector businesses and their annual emissions. Tax receipts from non-ETS Services sector emissions were estimated using energy use data from the SEAI Energy Balance along with information on tax rates and reliefs.
We calculated the average effective carbon rate for marked gas oil (MGO) used in Agriculture and Fishing using energy data from the SEAI Energy Balance and information on the rates of Excise duty, Carbon tax and the NORA Levy that applied to MGO. Figures were revised in this release as data on claims for tax relief on the increase in Carbon tax on farm diesel was published by Revenue, replacing previous estimates based on tax rates and volumes. MGO used for commercial sea-fishing is exempt from all three taxes.
The fuels used for household heating were coal, peat, kerosene, LPG, marked gas oil and natural gas. A low, often zero, rate of excise duty applies to fuels used for heating. All are subject to Carbon tax and the NORA levy is applied on kerosene and marked gas oil. Energy use data were obtained from the SEAI Energy Balance and information on tax rates was used to calculate the average effective carbon rate.
We used electricity consumption data from the SEAI Energy Balance and SEAI electricity emission factors to calculate emissions from electricity consumption by all sectors. Net receipts of electricity tax were published by Revenue, and PSO levy receipts were published in the CSO’s Environment Taxes release.
The UN System of Environmental-Economic Accounting (SEEA) is a statistical system that brings together economic and environmental information into a common framework to measure the condition of the environment, the contribution of the environment to the economy, and the impact of the economy on the environment. The SEEA contains an internationally agreed set of standard concepts, definitions, classifications, accounting rules and tables to produce internationally comparable statistics.
Eurostat has developed a series of legal and voluntary environmental accounts modules based on the SEEA, including an ongoing pilot data collection on Potentially Environmentally Damaging Subsidies introduced in 2023. The CSO has published statistical releases on the Eurostat Environment Taxes and Environmental Subsidies and Similar Transfers modules. This release complements those two releases as it enables users to compare the amount raised through energy taxes with the amount spent on fossil fuel subsidies as well as with the amount spent on environmental subsidies aimed at protecting the climate and the air, reducing fossil fuel consumption and increasing the share of renewables.
This CSO release provides data for SDG goal 12. Data for SDG Indicator 12.c.1 was first submitted for Ireland in 2022.
Target 12.c Rationalise inefficient fossil-fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect their environmental impacts, taking fully into account the specific needs and conditions of developing countries and minimising the possible adverse impacts on their development in a manner that protects the poor and the affected communities.
Indicator 12.c.1 Amount of fossil-fuel subsidies per unit of GDP (production and consumption).
The OECD defines a subsidy as the result of a government action that confers an advantage on consumers or producers in order to supplement their income or lower their costs. This definition is broader than the European System of Accounts definition. Although they do not appear in government budgets or accounts, the OECD definition includes tax expenditures as they constitute a loss of revenue by the government in order to support producer or consumer economic activity. The following WTO definition of a subsidy is also widely accepted:
In the Agreement on Subsidies and Countervailing Measures (ASCM) under the World Trade Organization (WTO), a subsidy shall be deemed to exist if
(a) (1) there is a financial contribution by a government or any public body within the territory of a Member (referred to in this Agreement as “government”), i.e. where:
(i) a government practice involves a direct transfer of funds (e.g. grants, loans, and equity infusion), potential direct transfers of funds or liabilities (e.g. loan guarantees);
(ii) government revenue that is otherwise due is foregone or not collected (e.g. fiscal incentives such as tax credits);
(iii) government provides goods or services other than general infrastructure, or purchases goods;
(iv) a government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions illustrated in (i) to (iii) above which would normally be vested in the government and the practice, in no real sense, differs from practices normally followed by governments;
or
(a) (2) there is any form of income or price support in the sense of Article XVI of GATT 1994;
and
(b) a benefit is thereby conferred.
Schemes were included in this release if they were regarded as a subsidy according to the OECD definition and directly benefitted producers or consumers of fossil fuels. Environmental Subsidies and Similar Transfers (ESST) are not included in this release nor are any Fossil Fuel Subsidies included in the ESST release. Support measures established for social policy reasons, such as fuel allowances, have been included in this release if they met these two criteria.
For the purposes of this release, a support is considered a subsidy if it is one of the following types of transaction or assistance:
| Type of Direct Transfer | ESA 2010 Definition |
| Subsidies (D.3) | Current unrequited payments which general government or the institutions of the European Union make to resident producers. |
| Social transfers in kind (D.63) | Goods and services provided for free or at prices that are not economically significant to individual households by government units and non-profit institutions. |
| Other current transfers (D.7) | Transfers between resident institutional units, or between resident and non-resident units, other than current taxes on income, wealth, etc., social contributions and benefits, and social benefits in kind. |
| Investment grants (D.92) | Capital transfers in cash or in kind made by governments or by the rest of the world to other institutional units to finance all or part of the costs of their acquiring fixed assets. |
| Other capital transfers (D.99) | Transfers other than investment grants and capital taxes which do not themselves redistribute income but redistribute saving or wealth among the different sectors or subsectors of the economy or the rest of the world. |
| Type of Indirect Supports | Definition |
| Tax reduction | Lower rate of tax than the standard rate. |
| Tax exemption | Exemption from obligation to pay a particular tax. |
| Tax refund | Partial or full repayments of tax already paid. |
| Tax credit; tax allowance | Reduction in the amount of tax owed. |
| Tax differential | In this release, difference between rates of tax applying to fuels which are being used for certain purposes, e.g. transport or heating. |
| Other government revenue forgone | Exemption from royalties on petroleum exploration; under-pricing of government-owned resources. |
| Price supports | Capacity payments, price guarantees and other price supports. |
Fossil fuel activities include exploration, extraction, manufacturing, refining and distribution of fossil fuels on the production side, as well as research and development supporting any of the above. Fossil fuel consumption by all sectors of the economy is also included as a fossil fuel activity.
In this release, a fossil fuel subsidy is any subsidy that directly incentivises or supports an increase in these activities. Many transport subsidies indirectly cause an increase in fossil fuel consumption. Transport subsidies are not included as fossil fuel subsidies but a list of transport subsidies is included in the Background Notes for information.
We divided supports into direct supports such as investment grants, and indirect supports such as tax expenditures. Data on direct supports were mainly obtained from government appropriation accounts, the annual accounts of government departments and agencies, and through requests to the relevant government department or organisation. An example of a direct subsidy is the PSO Levy support to electricity generation from peat.
Tax expenditures are defined relative to a system of benchmark taxes. Benchmark tax rates are the standard, conventional rates applied to economic transactions and activities in the economy. Tax expenditures are reductions in potential revenue due to deviations from the standard rates. The lower rates are intended to incentivise behaviour that meets particular policy objectives. Data on tax expenditures were mainly obtained from Revenue, or estimated using information from Revenue. An example of a tax expenditure is the reduced excise duty on road diesel compared with petrol.
The OECD has outlined three approaches to measuring tax expenditures:
The CSO uses the revenue forgone approach to calculating tax expenditures in this release. A table of benchmark taxes used for these calculations is shown below. A number of tax expenditures are due to differentials in Excise duty rates on fuels used for certain purposes.
The choice of benchmark can have a significant impact on estimates of revenue forgone. In 2022, the average current Excise rates on petrol and marked gas oil were lower than previous years due to temporary Excise rate reductions. This had the effect of reducing estimates of tax differentials, as the lower temporary rates were used as benchmarks. Had the benchmark rate been fixed at the rates before and after the temporary reduction, fossil fuel subsidies due to tax differentials would have been higher.
The Capacity Remuneration Mechanism, which is designed to ensure sufficient electricity generation capacity is available when demand is high, was included in this release as a price support to mainly fossil fuel-based electricity generators. The full annual payments were included, across fuel types and generation taking place in Ireland and Northern Ireland.
The table shows the benchmark tax rates for 2022 used in this release for calculations of tax expenditures.
| Type of Tax | Specific Tax from Irish Regime | Unit | Benchmark Tax Rate, 2022 |
| Excise Duty on Hydrocarbon Oils used in Transport/Industry (exclusive of Carbon Tax) | Excise Duty on Petrol (exclusive of Carbon Tax) | € per 1,000 litres | 440.53 |
| Excise Duty on Hydrocarbon Oils used for Heating (exclusive of Carbon Tax) | Energy Tax on Marked Gas Oil (exclusive of Carbon Tax) | € per 1,000 litres | 12.85 |
| Excise Duty on Electricity | Electricity Tax for non-Business Use | € per MWh | 1.00 |
| VAT on Energy Products | Standard VAT Rate | % | 23 |
The Petroleum Infrastructure Programme (PIP) was set up by the Petroleum Affairs Division (PAD) of the Department of Communications, Marine and Natural Resources in 1997. It consisted of three sub-programmes: the Offshore Support Group, the Rockall Studies Group, and the Porcupine Studies Group. It was replaced by the Petroleum Exploration and Production Promotion and Support (PEPPS) in 2003. PEPPS consisted of two sub-programmes, the Expanded Offshore Support Group and the Irish Shelf Petroleum Study Group (ISPSG).
The overall aims of PIP/PEPPS were to promote hydrocarbon exploration and development activities by strengthening local support structures and funding research. PIP/PEPPS were funded by oil and gas companies with Irish offshore exploration licences. Some of the funding was used for environment-related research, for example the ObSERVE programme, which was an aerial and acoustic marine wildlife survey carried out from 2015-2018. These amounts were excluded from the funding reported here.
The Petroleum Infrastructure Programme (PIP) was terminated in 2021.
ICRAG carries out research under a number of pillars, formerly including Energy Security. This SFI-funded research was aimed at "finding and producing hydrocarbons from offshore sedimentary basins". In addition the purpose was described as "to strengthen Ireland’s position as an international leader in key hydrocarbon research themes, and to advise government in optimising exploration and development strategies by provision of independent scientific information and exploration models." This funding terminated in 2020. ICRAG also carries out research into environmental protection areas such as marine geoscience and groundwater protection. This funding is included in the CSO Environmental Subsidies and Similar Transfers release.
The tax regime in Ireland was overhauled between 1987 and 1992 with the policy aim of incentivising fossil fuel activities by petroleum companies. The fiscal terms that apply to production from a Petroleum Lease are determined by the date of the award of the initial authorisation. In certain circumstances it is possible for production from leases obtained between 1987 and 2014 to result in no tax or royalty payments, e.g. if capital costs are used to write off the corporation tax that would otherwise owe on profits. Before 1987 and after 2014 a minimum payment was due in all circumstances, charged on gross revenue from the field. We have used a simple approach to obtain an estimate of the fossil fuel subsidy to producers in Ireland by calculating it as a royalty of 12.5% that would owe on the gross revenue from a producing field.
Capital expenditure on exploration, development and production extending back 25 years, including on fields other than the field in production, can be written off at a rate of 100% against profits from the field. The “tax losses” can be carried forward indefinitely by oil and gas companies. There are no data available on this subsidy.
In 2013 there were 11 claims for this relief at a cost of €10,000, according to the Department of Finance report on Tax Expenditures from October 2015. Since then the number of claims has been below ten and the cost has not been estimated, or data are not available. There are no data available for years previous to 2013.
In June 2022, the Commission for Regulation of Utilities directed EirGrid to procure circa 450 MW of additional generation capacity for winter 2023/24 through to winter 2025/26 to offset a potential capacity shortfall of electricity supply. This was to facilitate security of supply and ensure sufficient capacity on the system to enable security of supply in the peak periods when there is low wind and low interconnection available.
The PSO Levy is charged to electricity consumers in Ireland and was used to subsidise electricity generation from peat and from renewable sources, as well as generation from fossil fuels to ensure security of supply. We included the portions that go towards electricity generation from peat and security of supply as fossil fuel subsidies while the portion that supports electricity generation from renewable sources is included as an environmental subsidy in our Environmental Subsidies and Similar Transfers release.
The Commission for Regulation of Utilities (CRU) publishes an annual decision paper on the amount of the subsidy from October 1st in a given year until September 30th the following year. We have assigned the figure published by the CRU to the calendar year in which the majority of the subsidy year lies.
The PSO levy support for security of supply was terminated in 2016 while 2021 was the final year of PSO levy support to electricity generation from peat.
This is a payment to generators for being available to generate electricity when needed.
The Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs linked to the purchase and use of specially constructed or adapted vehicles by drivers and passengers with a disability. A person who qualifies for tax relief under the Disabled Drivers and Disabled Passengers Scheme will also qualify for the fuel grant.
The Diesel Rebate Scheme for hauliers and passenger transport came into effect on 1 July 2013. To qualify for inclusion in this scheme, road transport operators must hold an appropriate road transport licence. Road haulage operators must hold either a national or international road haulage operator's licence, while passenger transport operators must hold either a national road passenger transport operator’s licence or international road passenger transport operator’s licence.
This scheme was a precursor to the Fuel Grant. It was a repayment of excise duty on transport fuels for disabled drivers and passengers.
The Excise duty rate on petrol was reduced in 2022 in response to rising energy prices. The average rate was estimated across the year as €440.53 per 1,000 litres. The cost of the temporary rate reduction was calculated as the difference between the usual rate and the average reduced rate multiplied by the excise volume of road diesel.
Excise duty (excluding carbon tax) on road diesel was an average of €348.64 per 1,000 litres in 2022, while the petrol rate was an average of €440.53 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on road diesel compared to a benchmark or reference rate of the excise duty on petrol was calculated as the difference in the rates multiplied by the excise volume of road diesel.
Excise duty (excluding carbon tax) on road LPG was €63.59 per 1,000 litres in 2022, while the petrol rate was an average of €440.53 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on road LPG compared to a benchmark or reference rate of the excise duty on petrol was calculated as the difference in the rates multiplied by the excise volume of road LPG.
The Licensed Haulage Emergency Support Scheme was introduced in 2022 as a temporary grant scheme to provide a payment of €100 per week for 8 weeks for every heavy goods vehicle (over 3.5 tonnes) as listed on a road haulage operator’s licence as of 11 March 2022.
Businesses in Ireland can apply for a refund of VAT paid on road diesel used for business purposes. A refund is not available on petrol. The figures are estimated by the CSO using business expenditure on road diesel from the CSO Business Energy Use survey. The calculation measures the potential subsidy if all eligible businesses claim the refund so is likely to overestimate the actual amount claimed.
The Finance Act 2018 introduced a new incentive for certain types of gas vehicles and refuelling equipment used for business purposes. Data on claims are published by Revenue.
This scheme follows from a European Council Directive which sets a low minimum rate of taxation on energy products supplied for use as fuel for the purposes of navigation within Community waters (including fishing).
This is a tax exemption for jet kerosene used for commercial aviation. The figures are estimated using the volume of jet kerosene purchased in Ireland as published by the SEAI (Energy Balances). The reference excise charge was taken to be the rate on heavy oil used for air navigation.
Excise duty (excluding carbon tax) on marked gas oil was an average of €12.85 per 1,000 litres in 2022, while the average petrol rate was €440.53 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on marked gas oil compared with a benchmark or reference rate of the excise duty on petrol is calculated as the difference in the rates multiplied by the excise volume of marked gas oil used for purposes other than heating.
Aviation gasoline that has been used for a commercial or business purpose is subject to a refund at a rate of €232.27 per 1,000 litres.
This scheme is a repayment of VAT paid on marked gas oil, marked kerosene, or fuel oil used for combustion in the engine of a registered, qualifying sea-fishing vessel.
Estimates of the tax expenditure due to the zero rate of VAT on jet kerosene for international commercial flights were made based on data from the SEAI Energy Balance and international jet kerosene prices.
This is a tax exemption for fuel oil used to manufacture alumina. The figures are estimated using the volume of heavy oil for alumina manufacture and residual fuel oil published by Revenue, with excise charged at a rate of €13.45 per 1,000 litres from 2000-2004, and €14.78 per 1,000 litres from 2005-2017.
This is partial repayment of mineral oil tax paid on heavy oil (diesel, kerosene and fuel oil) and liquefied petroleum gas (LPG) used in horticultural production and in the cultivation of mushrooms.
Excise duty (including carbon tax) on fuel oil was €14.78 per 1,000 litres in 2022, while the average excise rate on petrol was €440.53 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on fuel oil compared with a benchmark or reference rate of the excise duty on petrol was calculated as the difference in the rates multiplied by the volume of fuel oil purchased.
Currently no estimates made.
The relief for increase in carbon tax on farm diesel allows farmers to claim a tax deduction equal to the difference between the amount of carbon tax paid on farm diesel and the amount of carbon tax that would have been paid had the rate stayed at €41.30 per 1,000 litres, which was the rate in 2010. In previous releases, this figure was estimated based on fuel volumes and carbon tax rates, however Revenue now publish data on claims under this relief. Revenue data replaces previous estimates in this release, resulting in a downwards revision to data for this measure.
The EU Emissions Trading System commenced in 2005. Airline operators were included from 2012. An emission permit allows the holder to emit one tonne of carbon dioxide. Major emitters of greenhouse gases were provided with free allowances of emission permits. The revenue forgone due to the free allocation of emission permits is calculated as the annual free allocation multiplied by the annual average price of a permit at auction.
The electricity allowance is part of the Household Benefits Package, which is available to all householders over 70 and to householders under 70 in certain circumstances. Electricity is generated from a mix of fossil and renewable resources, therefore a proportion of the electricity allowance equivalent to the proportion of electricity generated from renewable sources has been removed from each annual amount.
This is a tax exemption for household electricity consumption. The figures are estimated using SEAI figures on residential electricity use, with excise charged at a rate of €1.00 per MWh (Megawatt-hour), the rate applied to electricity use by non-business users in 2022. The subsidy was pro-rated by the proportion of electricity generated from fossil sources.
This was a reduced excise rate for business electricity consumption compared with non-business consumption until 2019. The business and non-business rates were equalised in 2020, removing this subsidy. The subsidy was pro-rated by the proportion of electricity generated from fossil sources.
Currently no estimates made.
Currently no estimates made.
The gas allowance is part of the Household Benefits Package, which is available to all householders over 70 and to householders under 70 in certain circumstances. The fuel allowance is a social welfare payment to households. It is a means-tested subsidy towards the cost of fuel with the objective of preventing fuel poverty. A coefficient of 0.4 is applied to the heating supplement to take account of the fact that it is only partly used to support households with their heating costs. This coefficient is also applied to the fuel allowance to account for purchases of wood and for other non-fossil fuel purchases. The smokeless coal allowance was paid to low-income households to help them meet the extra costs of using smokeless or low smoke fuels.
Kerosene was exempt from the non-carbon component of excise duty in 2022, while the average excise rate on marked gas oil was €12.85 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on kerosene compared with a benchmark or reference rate of the excise duty on fuels used for heating is calculated as the difference in the rates multiplied by the volume of kerosene purchased.
Non-road LPG was exempt from the non-carbon component of excise duty in 2022, while the average excise rate on marked gas oil was €12.85 per 1,000 litres. The revenue forgone by the State due to the reduced tax rate on other LPG compared with a benchmark or reference rate of the excise duty on fuels used for heating is calculated as the difference in the rates multiplied by the volume of other LPG purchased.
Currently no estimates made.
No data availability
Energy products are subject to the reduced rate of VAT at 13.5%. Estimates of the revenue forgone due to the reduced rate versus the standard rate (23%) were made using data on personal consumption expenditure on electricity, gas, solid fuels and liquid heating fuels from National Accounts.
Energy products are normally subject to the reduced rate of VAT at 13.5%, however this was reduced further to 9% in 2022 due to rising energy prices. Estimates of the revenue forgone due to the temporary reduced rate versus the usual rate (13.5%) were made using data on personal consumption expenditure on electricity, gas, solid fuels and liquid heating fuels from National Accounts.
The NORA Levy does not apply on fuel used for international aviation or maritime transport. Companies that hold sufficient levels of oil stocks are also exempt from the NORA Levy.
The NORA Levy was temporarily reduced to zero in October 2022 due to rising energy prices.
The TBESS was introduced to support qualifying businesses with increases in their electricity and natural gas (energy) costs in 2022.
The CVESS was introduced in 2022 to provide a contribution towards higher energy costs to eligible charities and community and voluntary sector organisations.
Due to the rising energy prices in 2022, the Government introduced Electricity Costs Emergency Benefit Schemes, which credited payments to over 2.1 million domestic electricity accounts in 2022. The amounts included as fossil fuel subsidies in this release were pro-rated according to electricity generation from fossil fuels in 2022.
Transport subsidies may indirectly increase carbon dioxide emissions from fossil fuel combustion. Transport subsidies identified to date include the PSO Air Services Scheme, VAT Relief for Touring Coaches, VRT reliefs, exemptions and repayments, tax relief on multi-storey carparks, VAT exemption for airline tickets on international flights, and the removal of the Air Travel Tax.
Revisions were carried out to the effective carbon rate on marked gas oil used in agriculture and fishing as data on tax relief claims made available by Revenue replaced previous estimates. The data showed that actual claims published by Revenue were significantly lower than potential claims previously estimated, hence the average effective carbon rate increased for all years from 2013-2021 published in this release. These revisions had an effect on calculations of marked gas oil used in other sectors and mostly minor revisions were therefore also made to rail diesel, marine diesel, services, industry and household effective carbon rates.
Average effective carbon rates for jet kerosene were calculated as excise, carbon tax and NORA levy paid on commercial and non-commercial jet kerosene purchased in Ireland, as well as EU-ETS permit purchases on flights originating in Ireland. The latter was estimated using ETS data on Irish airlines and OECD data on emissions from flights originating in Ireland. This revised method resulted in some minor upwards revisions to the data from 2013-2021.
This release includes revised data on a number of measures. Revised data on aviation gasoline repayments published by Revenue were included. A previous measure "Carbon tax repayments" was removed as it was found to be included with the excise repayment on commercial sea navigation. The relief on carbon tax on farm diesel was revised to align with published Revenue data on tax relief claims.
The electricity portion of the Reduced VAT rate on energy products was pro-rated for fossil fuel electricity generation across all years.
This release is published annually.
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