Dan Boyle
Question:173 Mr. Boyle asked the Minister for Finance if consideration of the introduction of a carbon tax will be as a replacement or as an additional tax; and if he will make a statement on the matter. [5390/03]
Written Answers - Tax Code.
Bernard Allen
Question:182 Mr. Allen asked the Minister for Finance if he proposes to introduce a carbon tax. [2410/03]
I propose to take Questions Nos. 173 and 182 together.
As I announced in my budget speech on 4 December 2002, we have international obligations under the Kyoto Protocol to reduce greenhouse gas emissions. For this reason, the Government has asked the relevant Departments to advance the plans for a general carbon energy tax, with a view to introducing this from the end of 2004. In general, a carbon energy tax is being considered in the context of taxation which would be additional to existing excise tax imposed on the same products. It would be inappropriate for me to speculate at this early stage what taxation measures may or may not be introduced, or whether the revenue from any carbon energy taxation would be used to reduce other taxes or would be used to fund necessary public services.