Vol. 525 No. 1
11 Mr. Sargent asked the Minister for Finance the merits of tax revenue from measures to minimise environmental damage being ring fenced so that expenditure can be directed toward specific and related quality of life improvements. [23627/00]
In the absence of specific legislation, Revenue is obliged to pay over all tax revenues to the central fund. Furthermore, taxes which are imposed to minimise environmental damage would be designed for that specific purpose, and not as substantial sources of revenue. As I have pointed out on previous occasions, if an environmental tax is truly successful, the revenue yield should decrease each year over time.
Environmental protection remains a key objective for the Government. We are committed to addressing the effects of economic development on the environment in the most effective way available. However, ring fencing tax revenue from specific measures to minimise environmental damage may be of limited value as an initiative in this regard.
