Finance Act 2014

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Amendment of Chapter 1 of Part 2 of Finance Act 1999 (mineral oil tax)

56. (1) Chapter 1 of Part 2 of the Finance Act 1999 is amended—

(a) in section 94(1) —

(i) by substituting the following for the definition of “additive”:

“‘additive’ means any product (other than hydrocarbon oil, liquefied petroleum gas, substitute fuel or vehicle gas) which may be added to—

(a) hydrocarbon oil,

(b) liquefied petroleum gas,

(c) substitute fuel, or

(d) vehicle gas,

as an extender or for the purpose of improving performance or for any other purpose, and cognate words shall be construed accordingly;”,

(ii) by substituting the following for the definition of “liquefied petroleum gas”:

“‘liquefied petroleum gas’ means gas classified within CN Codes 2711 12 11 to 2711 19 00;”,

(iii) by substituting the following for the definition of “mineral oil”:

“‘mineral oil’ means hydrocarbon oil, liquefied petroleum gas, vehicle gas, substitute fuel and additives;”,

(iv) in the definition of “hydrocarbon oil” by substituting “include vehicle gas or any oil” for “include any oil”,

(v) by inserting the following definitions:

“‘biogas’ means vehicle gas obtained solely from biomass;

‘CN Code’ means a Community subdivision to the combined nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987 ¹⁰ as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 ¹¹ ;

‘production of vehicle gas’ means compressing, liquefying, regasification, packaging, or any other process by which vehicle gas is produced and made available;

‘vehicle gas’ means gas other than liquefied petroleum gas used or intended for use as vehicle fuel;”,

and

(vi) by deleting the definition of “methane”,

(b) in section 94(2)(b)(ii) by substituting “oil or gas” for “oil”,

(c) in section 95 by substituting the following for subsections (1) and (2):

“(1) Subject to the provisions of this Chapter, and any regulations made under it, a duty of excise, to be known as mineral oil tax, shall be charged, levied and paid—

(a) on all mineral oil other than vehicle gas—

(i) released for consumption in the State, or

(ii) released for consumption in another Member State, and brought into the State,

and

(b) on all vehicle gas—

(i) produced in the State, or

(ii) brought into the State.

(2) Liability to mineral oil tax shall arise at the time—

(a) in the case of vehicle gas, when it is—

(i) produced in the State, or

(ii) brought into the State,

(b) in the case of mineral oil other than vehicle gas, when that mineral oil is—

(i) released for consumption in the State, or

(ii) following release for consumption in another Member State, brought into the State.

(2A) In the case of vehicle gas, the person who produces vehicle gas or the person who brings vehicle gas into the State shall be liable for and shall pay mineral oil tax.”,

(d) in section 96(1B) by substituting “mineral oil, other than vehicle gas,” for “mineral oil” where it first occurs,

(e) in section 96 by inserting the following after subsection (1B):

“(1C) The rate of tax per megawatt hour specified for vehicle gas in Schedule 2A is in proportion to the emissions for natural gas and is determined by the formula—

EF x A x C

where—

EF is the carbon emission factor of natural gas expressed in kilograms of CO2 per terajoule,

A is the amount, €0.02, to be charged per kilogram of CO2 emitted,

C is 0.0036, the number of terajoules per megawatt hour.”,

(f) by inserting the following section after section 96:

“Registration for vehicle gas

96A. (1) Every person who produces or intends to produce vehicle gas, or who brings or intends to bring vehicle gas into the State, shall register with the Commissioners in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

(2) A person registered by the Commissioners under subsection (1) shall apply to the Commissioners for approval of the installation, premises or place used or to be used for the production or storage of vehicle gas in accordance with such procedures as the Commissioners may prescribe or otherwise impose.

(3) A person registered by the Commissioners under subsection (1) shall comply with such requirements as the Commissioners may prescribe or otherwise impose for the purpose of collecting mineral oil tax and for the protection of the revenue derived from that tax.”,

(g) in section 100 by inserting the following after subsection (5):

“(5A) Subject to such conditions as the Commissioners may prescribe or otherwise impose, a relief from the carbon charge shall apply—

(a) to any vehicle gas that is shown to the satisfaction of the Commissioners to be biogas, and

(b) where biogas has been mixed or blended with any other vehicle gas, to the biogas content of any such mixture or blend.”,

(h) in section 104(2) by substituting the following for paragraph (g):

“(g) require a person who is an owner of or who is for the time being in charge of any motor vehicle constructed or adapted to use liquefied petroleum gas, vehicle gas or substitute fuel as a propellant in that vehicle to give such information as may be specified in relation to the supply or use of such mineral oil;”,

(i) by substituting the following for Schedule 2:

“SCHEDULE 2

Rates of Mineral Oil Tax

”,

and

(j) by substituting the following for Schedule 2A:

“SCHEDULE 2A

Carbon Charge

”.

(2) Section 97 of the Finance Act 2001 is amended by substituting the following for paragraph (c):

“(c) mineral oils within the meaning of section 94 of the Finance Act 1999 , other than vehicle gas within the meaning of that section.”.

(3) This section shall come into operation on such day as the Minister for Finance may appoint by order.

¹⁰OJ No. L256, 7.9.1987, p.1

¹¹OJ No. L279, 23.10.2001, p.1