Farmers using green diesel on their own farms will be “entitled to a refund through their tax system” for price rises due to the imposition of the incoming carbon tax increase, according to Minister for Agriculture, Food and the Marine Michael Creed.
However, speaking on this matter earlier today, the minister initially said that the carbon tax rise will not affect the price of green diesel.
Speaking at Government buildings tonight, Tuesday, October 8, AgriLand sought further clarity on this budgetary development. Commenting on this, the minister said:
“The carbon tax increase is applied to all fuels across the board.
“It will be applied to home heating oil as I understand it from after the winter season of 2020; I think it’s next April or May that’s to happen. But for all other fuels it will apply immediately.
But farmers using green diesel on their farms will not – they will be entitled to a refund through their tax system.
Continuing, Minister Creed said: “Bear in mind, what carbon taxes are about is encouraging behavioural change rather than revenue gathering.
“And there is also a dividend for us in that some of the proceeds will be coming back to the department and will be funding a new EIP in the area of less intensively managed, carbon-rich peatlands, which will inform the kind of projects we’d like to fund under the next Common Agricultural Policy (CAP).
“However, contractors will not be included in the exemption granted to farmers,” the minister said.
Asked whether contractors would be included in the exemption, the minister highlighted:
My understanding is that they are currently not entitled to the exemptions that individual farmers are, or the refund that individual farmers are and I think that’s going to stay.
“There isn’t a proposal to change that,” the minister concluded.