Dáil Éireann Debate, Friday - 16 December 2016
110. Deputy Róisín Shortall asked the Minister for Finance if he has considered introducing a graduated scale of carbon taxation based on the level and type of carbon gas emitted; and if he will make a statement on the matter. [40713/16]
View answerThe structure and application of all taxes are considered each year by my Department as part of the annual Budget and Finance Bill process, with policy options presented to the Tax Strategy Group. In relation to carbon tax specifically, options around this tax were contained in the 2016 TSG Paper 16/03 Energy and Environmental Taxes, which is published on my Department's website.
The Deputy will be aware that Carbon Tax was introduced on a phased basis over a period of time, with its application to transport fuels (petrol and diesel) in December 2009, in May 2010 it was extended to non-transport fuels such as kerosene, green diesel, liquefied petroleum gas and natural gas. When introduced the rate was €15 per tonne of CO2 emissions and this was increased to €20 per tonne in December 2011. Finally carbon tax was extended to solid fuels at a reduced rate of €10 per tonne from May 2013 which increased to €20 per tonne in May 2014.
In order to achieve the policy aim of reducing carbon emissions, carbon tax is applied per tonne of carbon gas emitted and by its nature a higher level of tax applies to those more carbon intensive fuels. While I keep an open mind on such matters, any changes to the application of carbon tax must take account of the impact on fuel policy and the broader economy.
