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Carbon Tax is ever on the increase and is one of a number of factors affecting energy price rises.  Solid Fuel Carbon Tax (SFCT) an excise duty applicable to solid fuel supplied in Ireland has been in effect since 1st May 2013 and is set to increase on 1st May 2014.

So who pays the tax?

The person or company making the first supply is liable for the Carbon Tax.  The tax is be collected on a self-assessed basis.

Solid fuel price increase

How much is it?

The Rate of tax in effect 1st May 2013 is based on a charge of €10 per tonne of CO2 emitted by the fuel concerned.

This rates will increase to €20 per tonne with effect from 1st May 2014, the graph illustrates the increase.

What tax relief is available?

Wood is not liable to the tax and wood products that have no solid fuel component are not liable to Solid Fuel Carbon Tax (SFCT).

A full relief from the tax is applicable to solid fuel supplied for use solely in the generation of electricity.
A full relief is applicable also to peat delivered for use in an installation that is covered by a greenhouse gas emissions (GHG) permit issued by the Environmental Protection Agency.
A partial relief applies for coal delivered for use in an installation covered by a GHG permit.
The relief may be applied at source by the supplier making the first supply, provided that the consumer gives the supplier, in advance of such supply, a properly completed declaration on the use of solid fuel.  If the supplier does not receive the declaration in sufficient time before a supply is made, the relief may not be applied at source, Instead, the supplier must account for the tax and the consumer must claim the relief subsequently from Revenue.

Full relief from the tax by means of repayment to the consumer is provided also for peat delivered to them for use in environmentally friendly heat and power co-generation.

A partial relief from the tax is available to consumers for coal delivered to them for environmentally friendly heat and power co-generation.

The relief for heat and power co-generation is subject to the condition that the CHP unit to which the solid fuel is being supplied, is certified by the Commission for Energy Regulation as meeting the high efficiency criteria laid down in EU regulations.