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Changes to windfall tax plans after Whitegate concerns

Funds from the windfall tax are being used to help offset the rising cost of living
Funds from the windfall tax are being used to help offset the rising cost of living

The Government has made changes to its plans for a windfall tax on fossil fuel companies after concerns were expressed by the company which owns the Whitegate oil refinery in Co Cork.

The facility is considered an important part of Ireland's energy infrastructure.

The refinery is owned by Irving Oil and processes up to 75,000 barrels of oil per day. It employs 230 people.

Sources have confirmed that the alterations to the planned levy would result in lower levels of income from the charge.

The Government has already announced plans which would result in tax raising up to €600m.

Funds from the tax are being used to help offset the rising cost of living.

Irving Oil had warned the Government that the planned tax could threaten the viability of the plant.

The tax is being introduced to levy some of the high profits being generated by energy companies.

It is understood the change would allow capital expenditure on assets purchased or built between 2018 to 2023 to be used to reduce profits liable for tax.

This would allow the expenditure to be used to offset the temporary solidarity contribution tax.

The Tánaiste said today that the windfall tax for fossil fuel companies was not diluted following lobbying from a refinery company, but said the Government was "anxious" there would be no unintended consequences for that business.

Micheál Martin was speaking today in Charleville following reports that changes were made to the provisions of the windfall tax on energy profits after the owners of the Whitegate oil refinery - the country's only such facility - warned that it could be forced to shut because of new charges.

It was reported today that the "solidarity contribution" - or windfall tax - by fossil fuel companies was changed by ministers, with proceeds to be reduced as a result.

"It wasn't diluted," Mr Martin said today.

"But I think in respect of Whitegate, that’s a vital national facility and there has been significant investment by the Irving company which rescued it at the time. There was really concerns about that company a number of years ago," Mr Martin said.

"What the Government are anxious is that there will be no unintended consequences for that company in particular as a result of the solidarity levy and I think it is an important facility which gives us capacity in the middle of an emergency in respect of oil supplies and energy supplies more generally," he added.

Additional reporting by Conor Kane