Dáil Éireann Debate, Tuesday - 23 March 2004
24 Mr. G. Mitchell asked the Minister for Finance his views on the case for tax neutrality to accompany carbon taxation in order that proceeds of the new tax are used to reduce the tax burden on other resource friendly items. [8651/04]
View answer41 Mr. Quinn asked the Minister for Finance the progress made by his Department in its consideration of the consultation papers on carbon taxes; and if he will make a statement on the matter. [8945/04]
View answer83 Mr. Gormley asked the Minister for Finance if he remains committed to the introduction of a carbon tax as outlined in his Budget 2003 speech; and if he will make a statement on the matter. [8977/04]
View answerI propose to take Questions Nos. 24, 41 and 83 together.
In my budget speech in December 2002, I said there would be full consultation with interested parties on the design of a carbon energy tax. In July 2003, I commenced this consultation process and made available a carbon energy tax consultation paper prepared by my Department. This consultation paper was designed to facilitate discussions on the introduction and design of the carbon energy tax while recognising that there are divergent views on the issue. The paper gave a concise overview of the issues relevant to consideration of the proposal including revenue recycling or 'tax neutrality'. Submissions in response to the paper were invited from interested parties to be received in this Department by 30 September 2003, but extra time was given where requested by organisations to complete their submissions. Some 117 submissions were received by my Department in response to the carbon taxation consultation paper.
The issue of revenue neutrality and recycling will be examined, along with all other relevant considerations, during the development of the carbon energy tax proposal in the coming months. Such an examination will include consideration of whether the tax should be recycled to the sectors on which it is levied or whether it should be used for other purposes including reducing the tax burden on other sectors. It would not be appropriate for me to comment further on any particular issue at this stage. The current step in this process is the examination of submissions received in the Department. As part of the consultation process, these submissions are now also available publicly via my Department's website.
