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Dáil

Written answer

Tax Yield

Summary

The Minister estimated annual VAT increases of €22 million on petrol and €21 million on diesel for each 10-cent price rise.

282. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the estimated additional VAT accruing to the Exchequer for each 10 cent increase in the average retail price of a litre of petrol and diesel; the total VAT collected on petrol and diesel in each of the years 2023 to 2025 and to date in 2026; and if he will make a statement on the matter. [67946/26]

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Simon Harris Tánaiste and Minister for Finance Fine Gael

I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on petrol and diesel using taxpayer information alone.

However, using Revenue and third-party data sources, a tentative estimate of the amount of VAT collected in the years 2023-2025 and to date in 2026 is presented in the table below:

Based on the current national average price and assuming that petrol and diesel volumes are at the levels observed over the preceding twelve months (August 2025 – July 2026), an estimate of the additional VAT accruing to the Exchequer resulting from a 10-cent price increase in a year is estimated to be in the region of €22m for petrol and €21m for diesel.

As the Deputy will be aware, schemes such as the VAT deduction scheme, the double income tax relief scheme and the Diesel Rebate Scheme mean that a significant portion of revenue raised from taxation of fuels is repaid to economic operators who are availing of these schemes.

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