Lower petrol tax hides other costs

Department of Finance figures show that Ireland’s excise rate on unleaded petrol is below the EU average. However figures have revealed that the government is able to obtain tax revenue through other expenses.

Although UK drivers pay the equivalent of 68.2c per litre in excise for unleaded petrol, Irish motorists are paying 44.3c per litre.
This puts us behind the Netherlands (66.8c), Germany (65.5c), Belgium (59.2c) and France (58.9c).
Ireland is behind the average at 44.3c per litre in Government excise tax take.
The AA hit out, however, at the excise figure, saying that these figures did not do justice to the Irish motorist.
AA spokesman Conor Faughnan stated that the figures did not take into account other taxes which Irish motorists paid on their petrol prices.

“There are many other ways in which money is taken off motorists including the 2% Government levy on motor insurance. Motoring is a very highly-taxed sector unlike other EU countries.
“If they (the Government) want the Euro comparison (on excise) to come to their defence, they can’t only look at petrol,” he said.
He added that the Government was taxing motorists to the tune of €4.6bn.

The Irish Road Haulage Association claims there is nothing stopping the Government reducing excise rates to levels more in line with Eastern European countries.