Tuesday, 29 September 2020

Ceisteanna (307)

Bernard Durkan

Ceist:

307. Deputy Bernard J. Durkan asked the Minister for Finance his expectations of likely funding available from carbon tax in 2020 and over the next five years; and if he will make a statement on the matter. [27254/20]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I am advised by Revenue that the estimated carbon tax receipts for 2020 are €455m (VAT exclusive). This estimate is based on trends seen to date during the year, including the fall in consumption due to COVID-19 restrictions. 

With regard to carbon tax receipts over the period 2021 to 2025, this will depend on a number of factors, such as changes in the world price of crude oil, exchange rate movements, general economic performance, changes in consumer behaviour arising from increases to the carbon tax, the uptake in cleaner technologies for transportation and heating purposes, potential changes to EU legislation which are directed at reducing or dis- incentivising fossil fuel consumption, and indeed several other considerations including any enduring Covid impacts.

Based on the 2019 tax base,  where the tax was applied to a volume of fossil fuels which in total when combusted releases approximately 21 million tonnes of carbon dioxide, the full year receipts from a tax rate of €26 per tonne CO2 are of the order of €550 million (VAT exclusive).