tax Archives - Ireland's Forecourt & Convenience Retailer

‘Pizza tax’ on processed foods recommended by Tax Commission

Linda Stewart — Thu, 15 Sep 2022 10:44:15 +0000

The Commission on Taxation has recommended taxing highly processed foods like pizzas.

The Government-appointed group is also suggesting huge increase in property taxes and road-usage taxes in a new report which calls for a radical overhaul of the tax and welfare systems over the next 10 to 15 years to fund the climate transition and a future with lower corporation tax.

A contentious proposal from the commission is that there should be tax on highly processed foods to discourage people from buying them.

This would mean that family favourites like pizzas, chicken nuggets and chips would face consumer taxes. Currently there is no Vat on food products.

The Commission recommends: “The Government should reserve the right to impose taxes on the consumption of ultra-processed foods, in order to support its policy of reformulation.”

And the commission calls for an additional charge to electricity bills is also set to be highly contentious.

Commission members said any increases should be carefully timed, clearly signalled in advance and should not act as a disincentive to the use of renewable electricity sources in carbon-intensive activities.

There is already Vat imposed on electricity bills. It has temporarily been reduced to 9pc, from 13.5pc, in response to the crippling cost-of-living crisis.

A public service obligation (PSO) charge applies to electricity bills, although that is negative at the moment. There is no carbon tax on electricity bills.

“The Commission recommends the introduction, in the medium term, of distance, location and time-based road usage charges,” the report states.

There should also be congestion charges in urban areas, the Commission recommends

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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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Government warned that banning cheap alcohol will send shoppers north

Linda Stewart — Thu, 11 Aug 2022 10:53:10 +0000

The government is being warned that new laws banning the sale of cheap alcohol could reduce tax returns because people are heading to Northern Ireland to buy beer, spirits and wine.

The government has been advised that the introduction earlier this year of minimum unit pricing on alcohol could ultimately lead to less tax due to people shopping across the border.

A Department of Finance Tax Strategy Group paper on excise duty said it was too early to gauge the impact of the introduction of minimum unit pricing.

But it warned: “It is clear, however, its introduction has resulted in price differentials on alcohol products across the border which might lead to an increase in cross-border trade, undermining the tax take from alcohol sales.”

The guidance came among a range of options on tax and welfare for ministers to consider as they prepare for next month’s Budget.

This includes proposals to increase all welfare rates by €15 and introduce tax cuts for two million taxpayers.

The government is not bound by the recommendations but Irish Finance Minister Paschal Donohoe said consideration will be given to all the proposals outlined by his officials.

The paper on excise notes that the Drinks Industry Group Ireland (DIGI) and the National Off-Licence Association have called in their pre-budget submissions for a 7.5% reduction in alcohol excise in Budget 2023 with a further 7.5% reduction in 2024.

“It considers that this will help the drinks and hospitality sector to rebuild commercial activity in all areas of the country and to recover employment,” it said.

The document also notes that the Republic has the highest level of excise duty on wine in the EU and the second highest on beer and spirits.

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Uk among European countries that has done least to help drivers hit by fuel price: RAC

Linda Stewart — Mon, 01 Aug 2022 00:01:09 +0000

The UK is one of the European countries that has done the least to support drivers with rocketing pump prices since Russia’s invasion of Ukraine, new RAC Europe data analysis shows – leading UK drivers to pay as much as 20p more per litre of petrol than drivers in France.

Out of 13 EU countries that have cut tax on petrol in order to ease the spiralling costs faced by drivers every time they fill up, only one – Luxembourg – has done less than the UK Government, with a duty cut in April worth the equivalent of 4.52p compared to the 5p duty cut announced at the UK Budget in March. It’s a similar picture for diesel, with only Croatia doing less for its drivers than the UK, with a cut worth 4.5p.

The UK Government’s intervention back in the Spring looks paltry when compared to most other European nations, with Germany taking the equivalent of 25p a litre in tax off per litre of petrol on 1 June, Italy 21p, Portugal 16p and both Ireland and the Netherlands nearly 15p, according to the RAC’s figures. Ireland ranks fifth when it comes to both petrol and diesel cuts.

Table showing Petrol comparison: https://datawrapper.dwcdn.net/ybRVm/1/

Tables showing Diesel comparison: https://datawrapper.dwcdn.net/RQzWH/1/

As an alternative to cutting fuel duty, governments of other countries in the EU have introduced fuel discounts at forecourt tills with Spain taking off 20 cents (about 17p) and France 18 cents (about 15p), while some fuel retailers including TotalEnergies in France and BP Spain have discounts running of up to 40 cents per litre (about 33p).

Of the remaining 15 EU states that haven’t taken steps to lower pump prices since March, all but six already charge less fuel duty than the UK even after the UK cut fuel duty by 5p in March’s Spring Statement.

Although UK pump prices have finally started to fall in recent days – after significant pressure from the RAC on retailers to reflect the fact wholesale fuel costs have been falling for seven straight weeks – the average price of a litre of both petrol and diesel is well above the current EU averages of 159p and 161p respectively.

The UK is currently the joint-second most expensive country when it comes to the average cost of a litre of petrol (186p) – behind only Finland (190p) with Denmark also at 186p – and the second most expensive for diesel at 195p per litre, with only Sweden charging more (201p).

The only apparent silver lining is that drivers heading abroad with their own cars this summer will benefit from lower pump prices on the other side of the Channel. The cost of filling a 55-litre family car with petrol in France, for instance, is around £12 cheaper than it is in the UK (£89.66 compared to £102.30), and for diesel is £17 cheaper (£90.20 compared to £107.25 in the UK).

RAC fuel spokesman Simon Williams said: “This analysis lays bare an uncomfortable truth for the UK Government – that compared to other European countries, it’s pretty much done the least to support drivers through the current period of record high fuel prices. The result is the UK being one of the most expensive places to fill up and putting it above other countries that have historically charged more for fuel than UK retailers do, including France and the Netherlands.

“Perhaps even more frustratingly, those countries that have not cut tax on fuel at all since March – including Greece and Austria – are still cheaper than the UK. At the opposite end of the spectrum, some other nations have done a huge amount with Portugal cutting duty an incredible seven times since March, and France and Spain both offering significant discounts on fuel at the checkout.

“Drivers might also be surprised to learn that some major oil companies and fuel retailers – including BP in Spain and Total in France – have decided to introduce their own discounts, something that’s unheard of here. At least UK drivers venturing abroad this summer will be pleasantly surprised that prices are in some countries significantly lower than at home.

“The cost-of-living crisis shows no signs of coming to an end anytime soon and it’s frustrating that repeated calls to the UK Government for more support are falling on deaf ears. UK pump prices might be finally starting to fall, but the reductions so far are too little and too late, given the massive wholesale price drops retailers have been benefiting from for nearly two months.

“Drivers, many of whom depend heavily on their vehicles, need more help and they need it now.

“For any drivers heading to Europe in their own cars this summer, ensuring they have a comprehensive level of European breakdown cover is also vital to give complete peace of mind.”

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Minister rejects call to pause carbon tax as fuel prices rise

Linda Stewart — Thu, 09 Jun 2022 10:13:18 +0000

The heritage minister has rejected calls for the Carbon Tax to be reduced amid rising fuel prices, saying it is vital in order to fund the national retrofit programme.

With many petrol stations now charging more than €2 a litre for petrol and diesel, Green Party Junior Minister Malcolm Noonan said the Government has already introduced €2.4 billion worth of interventions to tackle rising energy costs and there are “no plans to change the Carbon Tax rates”.

He was speaking in response to comments by former environment minister, Independent TD Denis Naughton who said the Government needs to do more to help people who are struggling financially.

Deputy Naughton argued that existing Carbon Taxes should be removed to reduce fuel prices for motorists. He said when he served as environment minister, he wanted to introduce a system where Carbon Taxes would increase when crude oil prices reduced and drop when oil prices increased.

Minister Noonan said he was “surprised” by Deputy Naughton’s comments which were made “in the depths of a climate emergency”.

“Government has intervened with the reduction on the VAT rate on the supply of electricity and gas, the cut in public transport of 20pc and a 50pc in cut in fares for young adults. So, there’s quite a number of interventions, a €2.4 billion package, there that have been in place to try and deal with the rising cost of living and certainly it’s not on the cards to look at the Carbon Tax,” he said.

Minister Noonan said: “The Carbon Tax is ring-fenced for the retrofit of homes. It’s playing a significant role, not just in terms of reducing emissions and changing behaviour, but Government is intervening in a positive way in terms of the public transport measures that have already been introduced,” he said.

“I think the point that Denis is making is we as Government have to intervene in a way that is targeted at people most vulnerable and we are doing that in relation to public transport and the fact that the Carbon Tax is being used to offset other costs that people are having, particularly in rural Ireland, and retrofitting of homes.”

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