Dáil Éireann Debate, Monday - 11 September 2023
185. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue generated by temporary solidarity contributions in 2023 if the temporary solidarity contribution set at a rate of 100% was applied from 1 January 2022 to 31 December 2023. [39019/23]
View answer186. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue generated by the temporary solidarity contribution in 2023 if the temporary solidarity contribution set at a rate of 95% was applied from 1 January 2022 to December 2023. [39020/23]
View answer187. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue generated by temporary solidarity contributions in 2023 if the temporary solidarity contribution set at a rate of 90% was applied from 1 January 2022 to 31 December 2023. [39021/23]
View answer188. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue generated by temporary solidarity contributions in 2023 if the temporary solidarity set at a rate of 85% was applied from 1 January 2022 to 31 December 2023. [39022/23]
View answer189. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue generated by temporary solidarity contribution in 2023 if the temporary solidarity contribution set at a rate of 80% was applied from 1 January 2022 to 31 December 2023. [39023/23]
View answerI propose to take Questions Nos. 185 to 189, inclusive, together.
On 17th July 2023, the Energy (Windfall Gains in the Energy Sector) (Temporary Solidarity Contribution) Act 2023 passed through the Houses of the Oireachtas and was signed into law by the President.
In accordance with Council Regulation 2022/1854, the Act introduces a temporary solidarity contribution to fossil fuel companies on earned unexpected surplus profits (“windfall gains”) for the years 2022 and 2023 as a result of the Ukraine war. Through the Act, taxable profits which are more than 20% above the baseline period from 2018 to 2021 will be subject to the temporary solidarity contribution at a rate of 75%.
A rate of 75% is considered appropriate and is one of the highest in Europe (e.g. Slovakia 70%, Romania 60%, Czechia (60% for 2023)). Other countries have implemented the minimum rate of 33% in the Council Regulation. As the rate of 75% is contained within commenced legislation, any subsequent efforts to amend this legislation would likely carry significant risks to Ireland’s reputation and credibility.
