Programme for Government

Tuesday, 7 July 2020

Ceisteanna (203)

Gerald Nash

Ceist:

203. Deputy Ged Nash asked the Minister for Finance his plans to focus tax rises on behavioural taxes with negative externalities such as carbon tax, sugar tax and plastics as outlined in the programme for Government; his views on whether the cited behavioural taxes are not a sustainable source of revenue in view of the fact the stated objective of the tax is to reduce consumption of the good producing the negative externality; his further views on whether these taxation measures match the broader aim to achieve a sustainable tax environment as outlined in the programme for Government; and if he will make a statement on the matter. [14599/20]

Amharc ar fhreagra

Freagraí scríofa

Minister for Finance

The Programme for Government sets out the Government’s intention to utilise taxation measures, as well as expenditure measures, to close the deficit and fund public services, if required. It is further stated in the Programme that governmental policy will aim to focus any tax rises on those taxes which tax behaviours with negative externalities, such as carbon tax, sugar tax, and plastics.

Excise taxes seek to reflect the negative externalities caused by the consumption of an excisable commodity. These externalities are the costs to society that without the tax would not otherwise be reflected in the price of the excisable commodity and for which the consumer would not otherwise have to pay. The carbon tax and sugar tax are taxes are reviewed on an ongoing basis throughout the year and analysis of yields and trends forms part of the examination of budgetary options.

The impact of COVID-19 domestically and internationally will have a bearing on any budgetary policy decision and we will have greater clarity on this prior to Budget 2021 when, as outlined in the Programme for Government, we will set out a medium-term roadmap detailing how Ireland will reduce the deficit and return to a broadly balanced budget.