Solid Fuel Carbon Tax (SFCT)

Overview

Solid Fuel Carbon Tax (SFCT) applies to coal, peat briquettes, milled peat and other peat supplied in the State on or after 1 May 2013. Wood and wood products that have no solid fuel component are not liable to SFCT.

The rate of tax that applies to solid fuel is proportionate to the amount of CO2 emitted when the fuel is combusted.

Liability to SFCT arises at the time the fuel is first supplied in the State. The supplier is liable to account for and pay SFCT.

Where an individual personally purchases, and brings solid fuel into the State, they do not have a tax liability provided:

  • the fuel is for their own private use
  • and
  • they accompany the fuel into the State.

If that individual, instead of using it for their own use, supplies another person in the State with that fuel they will:

  • have made a first supply of solid fuel in the State as a supplier
  • and
  • be liable to pay SFCT on that supply and must register with Revenue accordingly.

Revenue administers, collects and enforces Solid Fuel Carbon Tax on first supplies of solid fuel in the State.  

The Department of Communications, Climate Action and Environment (DCCAE), in conjunction with local authorities, is responsible for enforcing environmental standards for solid fuels.  A regulatory regime covering the marketing, sale, distribution and burning of solid fuels is operated by DCCAE and enforced by local authorities.

A ban on the burning of smoky coal and certain other fuels applies in Low Smoke Zones across the State. This complements the ban on the marketing, sale and distribution of those fuels in Low Smoke Zones. Under the regulatory regime all low smoke coal and solid fuel products must be clearly labelled. This allows you to make an informed choice about the products you purchase.  

Further details are available on the DCCAE website.

SFCT applies equally to low smoke and smoky solid fuel.

Next: Taxable and tax-free solid fuel supplies