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Natural Gas Carbon Tax (NGCT)

  1. Overview
  2. Liability
  3. Rate of tax
  4. Natural Gas supplied for use as fuel in a motor vehicle
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  6. Returns and payments
  7. Reliefs
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Rate of tax

The legislation for the rate of NGCT was amended in Finance Act 2020. From 1 May 2021 the NGCT rate is expressed in legislation as Gross Calorific Value (GCV). From that date, a conversion from the Net Calorific Value (NCV) rate to GCV rate for NGCT returns to Revenue is no longer required.

  • From 1 May 2023 a rate of €8.77 per MWh at GCV applies. This increase is based on the amount charged per tonne of carbon dioxide (CO2) emitted increasing from €41.00 to €48.50.
  • Previously, from 1 May 2022 to 30 April 2023, a rate of €7.41 at GCV (€8.22 at NCV) per megawatt hour applied. This rate was based on a carbon charge of €41.00 per tonne of CO2 emitted when natural gas is combusted.

The following table provides a breakdown of the current and previous NGCT rates. It also includes the conversion factors used to convert from NCV to GCV.

Current and previous rates for Natural Gas Carbon Tax
Rate effective from GCV to NCV Rate Conversion Factor Supply Measured at NGCT rate per MWh 
01/05/2022 to 30/04/2023   0.9017 GCV €7.41
NCV  €8.22
       
01/05/2023  0.9017 GCV €8.77
NCV €9.73
   
  • Example 1

    Calculation of NGCT rate (Gross Calorific Value per Megawatt Hour)

    55,738(a) * 0.003246 (b) * €0.0485(c) = €8.77

    a Emission factor of natural gas in kilograms of CO2 per terajoule
    b Number of terajoules per megawatt-hour
    c

    Carbon charge of 4.85 cent per kilogram of CO2 emitted
  • Example 2

    Calculation - Conversion from GCV rate to NCV rate

    €8.77 (d) / 0.9017 (e) = €9.73

    d rate in gross calorific value
    e

    Conversion Factor

Next: Natural Gas supplied for use as fuel in a motor vehicle

Published: 11 September 2023 Print this page

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