Budget Archives - Ireland's Forecourt & Convenience Retailer

Taxes on alcohol and cigarettes look set to remain untouched in budget

Linda Stewart — Thu, 18 Aug 2022 09:07:51 +0000

Taxes on alcohol and cigarettes look set to go untouched in next month’s budget.

Senior sources said they did not think it was the time to increase excise on the so-called “old reliables” of alcohol or cigarettes amid concerns about increasing the burden on consumers, the Irish Times said.

There has been a conversation around whether the Government has “hit the ceiling” on hiking the price of tobacco, with increases of 50 cent on a 20 pack of cigarettes implemented in each of the last seven budgets.

One figure said that if a public-health rationale is put forward for increasing the price of a pack of cigarettes, that will be considered, but an increase to excise on alcohol is viewed as highly unlikely.

Ministers are also working on a package of tax changes for businesses, including improvements on the capital gains tax entrepreneur relief, a review of the Keep share option scheme and potential movement on the research and development tax credit.

A rainy-day fund will likely be reintroduced next year, with a proportion of next year’s projected exchequer surplus forecast to go into this.

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New car registrations drop but EVs gain market share: SIMI

Linda Stewart — Tue, 02 Aug 2022 15:20:29 +0000

New car registrations are down 11.3% compared to pre-Covid levels, according to the latest figures from the car industry.

The Society of the Irish Motor Industry (SIMI) released the official 222 new vehicle registration figures, which revealed that new car registrations for July were down 17.3% (21,902) when compared to July 2021 (26,477), while year to date registrations are down 3.6% (87,075) on the same period last year (90,330).

Light Commercials vehicles (LCV) are down 14.8% (4,039) compared to July last year (4,740) and year to date are down 21.4% (17,100). HGV (Heavy Goods Vehicle) registrations are down 1.6% (317) in comparison to July 2021 (322). Year to date HGV’s are down 9.4% (1,675).

Used car imports for July (4,206) have seen a decrease of 21.3% on July 2021 (5,344). Year to date imports are down 31.1% (28,316) on 2021 (41,097).

For the month of July 2,738 new electric vehicles were registered compared to 1,895 in July 2021. So far this year 11,182 new electric cars have been registered in comparison to 6,225 on the same period 2021 an increase of 79.6%.

Electric Vehicle, Plug-in Hybrids and Hybrids continue to increase their market share, with a combined market share now of 40.9%. Petrol continues to remain dominant with 29.29%, Diesel accounts for 27.51%, Hybrid 21.23%, Electric 12.84% and Plug-in Electric Hybrid 6.83%.

Commenting on the new vehicle registrations Brian Cooke, Director General SIMI said: “Disappointingly July new car registrations, our second highest sales’ period, are down 17.3% on July 2021. This means the new car market is now 4% behind year to date and 17% behind pre-COVID 2019.

“The electric vehicle segment continues to grow, both in quantum and as a proportion of the new car market, with an 80% year on year growth and a market share of 13%.

“While it appears that there is appetite among consumers for both new and used cars, supply issues are hampering overall activity. The impact of this is another year of below par performance in the Irish new car market, which results in the Irish car fleet continuing to get older.

“The underlying new car market needs to grow significantly over the next few years if we are to optimise transport emission reductions. Government policies must contain the right measures, to support and encourage the change to lower and zero emitting vehicles. Reducing EV supports or increasing taxation will only act as a barrier to change and add to the cost of living.

“In this context, SIMI is asking the Government to continue its support for the EV project by extending EV supports at current levels out to 2025 and to resist any VRT increases in Budget 2023 which will only prove counterproductive and prevent us dealing with the legacy fleet in an effective manner that supports a just transition.”

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UK chancellor announces 5p a litre cut in fuel duty

Linda Stewart — Wed, 23 Mar 2022 14:03:29 +0000

UK chancellor Rishi Sunak has announced a 5p a litre cut to fuel duty as motorists struggle with record fuel prices.

The chancellor said the move, which starts at 6pm on Wednesday and will last until next March, was “the biggest cut to all fuel duty rates ever”.

Motoring group RAC said the cut would take £3.30 off the cost of filling a typical 55-litre family car, and warned that the measure was a “drop in the ocean” for motorists.

RAC head of policy Nicholas Lyes said: “With petrol and diesel prices breaking records almost daily, and the cost to fill up a petrol car at over £92 and a diesel at nearly £100, we’re pleased to see the Chancellor has given drivers some much-needed relief at the pumps, but the reality is that a 5p cut in duty is something of a drop in the ocean.

“In reality, reducing it by 5p will only take prices back to where they were just over a week ago. With the cut taking effect at 6pm tonight drivers will only notice the difference at the pumps once retailers have bought new fuel in at the lower rate. There’s also a very real risk retailers could just absorb some or all of the duty cut themselves by not lowering their prices. If this proves to be the case it will be dire for drivers. It also wouldn’t be totally unexpected based on the biggest retailers not reducing their prices late last year when the oil price fell sharply.

“Temporarily reducing VAT would have been a more progressive way of helping drivers as the tax is applied at the point the fuel is sold, removing any possibility of retailers taking some of the tax cut themselves to increase their profits. It’s also the case that the Treasury is benefitting hugely from the high fuel prices because of greater VAT revenue. The Chancellor is currently getting 28p a litre VAT on petrol and 30p on diesel – this of course comes on top of fuel duty as VAT is a tax on a tax.”

Supermarket chain Asda said it would reduce its pump prices 6p a litre, including a 1p reduction in VAT.

The average price of a litre of petrol has risen more than 40p a litre since last year’s Spring Statement, which means the government is getting an extra 7p per litre in VAT, which is the other tax the government imposes on fuel.

Diesel prices are up by nearly 50p a litre, almost 9p of which is VAT.

The decision to cut fuel duty i will help logistics businesses to afford to keep supplying the nation with the goods it needs in the face of increasing fuel prices and other inflationary pressures, said Elizabeth de Jong, Director of Policy at Logistics UK.

“With average fuel prices reaching the highest level on record and rising inflation, there has been an unstainable burden on logistics businesses which operate on very narrow margins of around 1%; the Chancellor’s decision today will help to ensure operators can continue to afford supplying the nation with all the goods it needs, including food, medicine and other essential items,” she said.

“Fuel is the single biggest expense incurred by logistics operators, accounting for a third of the annual operating cost of an HGV. The cut in fuel duty of 5ppl will result in an average saving of £2,356 per year per 44-tonne truck; this move will help to strengthen the UK’s supply chain during a time of ongoing financial and operational challenges.”

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Logistics businesses urge UK chancellor to cut diesel duty

Linda Stewart — Mon, 14 Mar 2022 10:14:59 +0000

Sky high fuel prices are placing an unsustainable burden on UK businesses and the government must introduce a temporary reduction in diesel fuel duty to protect the economy, according to one of the UK’s biggest business groups, Logistics UK.

Writing to Rishi Sunak MP, Chancellor of the Exchequer, ahead of the Budget 2022, Elizabeth de Jong, the business group’s Director of Policy, said: “Logistics businesses, which operate on very narrow margins of around 1%, are currently facing significant increases in the price of fuel. These additional costs cannot be absorbed by logistics operators and it is unavoidable that much of these cost rises will need to be passed on to end customers as a result.

“Fuel is the single biggest expense incurred by logistics operators – it accounts for a third of the annual operating cost of an HGV and without it, goods cannot be delivered to their destinations. Logistics UK is urging Rishi Sunak MP to cut diesel fuel duty in the next budget. This reduction could be temporary and reviewed in the Autumn Statement, should fuel prices have fallen.”

Crude oil was trading at its highest level for 14 years on 8 March 2022. The cost of crude oil has risen by 12% since the start of the Ukrainian conflict, and 41% since the start of the year, and the price of diesel is 24% higher at the forecourt year on year. Logistics UK estimates that just one penny increase in duty adds around £470 per year to the cost of running one truck.

Logistics UK is one of the UK’s leading business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods.

With COVID-19, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc, the group says. Logistics UK has members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.

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Hauliers spark Dublin traffic disruption in protest over fuel costs

Linda Stewart — Wed, 24 Nov 2021 11:08:04 +0000

Protests have brought traffic to a standstill in Dublin as hauliers and truckers drove convoys of lorries into the city centre to highlight fuel costs.

Streets around Leinster House were blocked off by gardaí in advance of the protest.

A group of truckers and hauliers – naming itself the Irish Truckers Haulage Association Against Fuel Prices – is calling for “lower fuel costs at the pump and at home”, and said it wants “lower costs and lower taxes, rebates are no good.”

The group called for a “peaceful protest” and advised those taking part to keep hard shoulders and bus lanes free.

The Irish Road Haulage Association distanced itself from the group and the protest, with President Eugene Drennan saying it was difficult to engage with the group as it is “faceless”.

“It is very hard to know who or what they are. While their goals might be similar to what we are negotiating towards, we don’t know exactly what they want,” he said.

In a posting on Facebook, the Irish Truckers Haulage Association Against Fuel Prices group listed meeting points on the M1, M2, M3, M4, M7, and M11 motorways and said HGV and LGV owner operators intended to travel towards the Dáil.

“All roads lead to Kildare Street or as far as we can get. When we stop don’t move,” the post said.

But it asked participants to “have some consideration” for emergency vehicles.

“We don’t want any trouble or vigilante groups to act up. Stay at home if that’s your plans please,” it said.

The post also raised the possibility of an additional protest in the week before Christmas.

Mr Drennan said the IRHA has “big grievances” with the Government and Minister for Environment Eamon Ryan, but members had decided they “did not want to cause any grief to the public before Christmas” – however, they reserved their right to protest in the New Year.

Independent TD Richard O’Donoghue, who drove the cab of an articulated truck to the Dáil yesterday, said the plan was for a peaceful protest that would be “respectful of people and emergency vehicles”.

Mr O’Donoghue said he drove the vehicle to the Dáil as part of his own “silent protest” to highlight the issue of a disparity of services and infrastructure outside cities and called for a “level-playing field for everyone”.

The TD for Limerick county called for increased investment in rural areas.

“It is about incentivising people, not crippling the country by taxing them. They are driving prices up and there’s no alternatives,” he said.

Under Budget 2022, the cost of petrol and diesel rose alongside a planned increase in the rate of the carbon tax.

The carbon tax increased another €7.50 to €41 per tonne and is due to continue to rise each year until it reaches €100 per tonne.

Petrol and diesel costs came into effect in October after the Budget announcement, with the price of a litre of each rising by 2.5c and 2.1c respectively.

That equates to around €1.28 extra for a 60-litre tank of petrol or a €1.48 jump for diesel.

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