Natural Gas Carbon Tax (NGCT)
Reliefs
Reliefs that can be applied at source
A full relief from the tax is granted for natural gas which is shown, to Revenue's satisfaction, to have been supplied:
- solely for the generation of electricity (excluding combined heat and power cogeneration (CHP)
- for chemical reduction
- in electrolytic or metallurgical processes.
A supplier may apply a relief at source based on a completed declaration by the consumer. The consumer must complete the Exempt Purposes declaration for the natural gas that qualifies for a relief. The completed declaration must be sent to the supplier and a scanned copy must also be sent to Revenue via MyEnquiries.
A supplier may only apply a relief at source where that supplier receives a declaration in advance of the supply. In any other case the relief must be claimed from Revenue by the consumer.
If a consumer provides:
information to a supplier, the consumer and not the supplier will be liable for any underpaid tax.
Combined Heat and Power Cogeneration (CHP)
Natural gas used as fuel for CHP plants is not eligible for relief.
High efficiency combined heat and power cogeneration (HE CHP)
There is a full relief from NGCT for natural gas used in environmentally friendly HE CHP. Full details of this relief are available in the high efficiency combined heat and power cogeneration section.
Partial relief for Greenhouse Gas Emissions Permit Holders
A partial relief from NGCT is available for greenhouse gas emissions permit holders. The relief is granted for natural gas delivered for use in an installation covered by a greenhouse gas emissions permit. This permit must be issued by the Environmental Protection Agency.
The natural gas will be taxed at the minimum rate specified in the EU Energy Tax Directive. The minimum rate is specified at €0.54 per megawatt hour at gross calorific value.
A supplier may apply this relief at source based on a completed declaration by the permit holder. The permit holder must complete the Greenhouse gas emissions permit holders declaration for the natural gas that qualifies for the relief. The completed declaration must be sent to the supplier, and a scanned copy must also be sent to Revenue via MyEnquiries.
A supplier may only apply a relief at source where that supplier receives a declaration in advance of the supply. In any other case the relief must be claimed from Revenue by the consumer.
If a consumer provides:
information to a supplier, the consumer and not the supplier will be liable for any underpaid tax.
Horticultural production and mushroom cultivation
Natural gas supplied from 1 April 2024 and used for horticultural production or mushroom cultivation qualifies for full relief from NGCT. Qualifying uses include:
- heating glasshouses (minimum area 1,011 square meters) for growing horticultural produce
- heating tunnels or buildings (minimum area 278 square metres) for cultivating mushrooms
- producing steam for sterilising glasshouses, mushroom tunnels and buildings
- heating and sterilising earth or other growing medium
- and
- producing carbon dioxide.
Repayment claims, on Form NGCT-Hort-Relief, and supporting natural gas bills are to be submitted through MyEnquiries.
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