Hauliers and public transport companies nationwide faced with the possibility of a hard Brexit received a timely boost with a diesel rebate scheme in Budget 2020, Cork North West General Election Candidate Cllr. John Paul O’Shea has said.
Cllr. O’Shea said the budget, which is heavily focused on Climate Action, considered the impact carbon taxes could have on the haulage and public transport industry.
Finance Minister Paschal Donohoe told the Dáil this week that the Fine Gael led Government will provide additional relief through the diesel rebate scheme to hauliers to compensate that sector for the increased cost of fuel.
Cllr. O’Shea said hauliers are already faced with a potential no-deal Brexit which will have an impact on their business and the rebate scheme was a much welcome development.
“The diesel rebate scheme will be amended with the marginal rebate rate doubling from 30pc to 60pc when the retail price of diesel is over €1.07 VAT exclusive. There are many small transport businesses nationwide which need all possible assistance at these perilous times.
“This measure is aimed at maintaining the competitiveness of the road haulage sector and minimising the impact for the sector and related businesses which rely on road haulage services.
Cllr. O’Shea added “The scheme offers a partial excise refund to qualifying hauliers and bus operators based on the retail price of diesel. The current operation of the scheme provides a marginal rate of compensation of 30% of the excise paid when the price of diesel is over €1.00 (VAT exclusive) to a maximum rate of 7.5 cents at a price of €1.25 or higher (VAT exclusive).
“Budget 2020 will double the marginal rate of compensation from 30% to 60% when the retail price of diesel is over €1.07. While the marginal rebate rate will remain at 30% for every additional cent above €1.00 up to €1.07, beyond this price point the rebate will double.
“The maximum rebate rate will remain at 7.5 cents per litre. This means that the carbon tax increase will be absorbed by the diesel rebate scheme at current prices.