Hauliers welcome rebate on diesel in bid to soften Brexit impact on crucial industry
HAULIERS and public transport companies nationwide faced with the possibility of a hard Brexit saw some light with a diesel rebate scheme in Budget 2020.
Finance Minister Paschal Donohoe told the Dáil that the government would provide additional relief through the diesel rebate scheme to hauliers to compensate that sector for the increased cost of fuel.
Dundalk Councillor, John McGahon, said the budget, which he said was ‘ heavily focused on Climate Action, considered the impact carbon taxes could have on the haulage and public transport industry.’
Cllr. McGahon 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.
Cllr. McGahon said 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. The scheme offers a partial excise refund to qualifying hauliers and bus operators based on the retail price of diesel.’
He added: ‘ 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).’
Verona Murphy, President of the Irish Road Haulage Association, also welcomed the reabte, saying: ‘It was critical that the Government, in bringing in a carbon tax, enabled our members to offset this increase through our diesel rebate scheme. In doing this, the Government has recognised that diesel continues to be the only viable and readily available fuel type but is also the most cost effective, carbon and energy efficient fuel for use in HGVs.
Ms Murphy added: ‘ The government has made it clear that the purpose behind the possible introduction of carbon tax and diesel price equalisation is to nudge people and business towards electric vehicles and other alternatives to diesel. There is no readily available alternative to diesel for the haulage industry and there won’t be for decades to come.’