The additional carbon tax revenue yield estimate of €9.5 billion was based on an increase in the rate of the carbon tax to €100 per tonne by 2030 above the €20 per tonne rate that existed until 2019.
The table provided at the following link therefore sets out the projected additional revenue raised in each year through increases in the carbon tax rate from €20 per tonne, starting from 2021 as requested by the Deputy.
To note, the figures in the table illustrate the additional total yield as calculated on a static basis which includes the carryover from the previous rate increase plus the additional revenues raised from the current carbon tax rate in any given year.
Projected Carbon Tax Revenue
All such estimates represent point in time projections and the actual outturn revenues will be dependent on a host of variables including changes in the macroeconomic environment, including energy prices, policy decisions by Government, changes in consumer behaviour and other factors. The confidence bounds surrounding the estimates are also unavoidably widened by the difficulty in estimating the impact of changes in tax policy rates many years in advance and calculating the additional yield against a counter-factual base rate of €20.
