Carbon tax to double in Ireland

As part of the tough austerity measures announced by the Irish government in its recovery package will be a huge hike in carbon tax.


The government describes it as a move to counter climate change but it is certainly part of the drive to raise taxes and revenue.

The government has taken Euro 168.5 million in carbon taxes this year and this will double over the next four years to Euro 330 million.

In the 2010 budget a carbon tax was introduced at a rate of Euro 15 per tonne, this will increase to Euro 30 per tonne by 2014

The budget plan states that “The economic and social implications of climate change are immense and it is the responsibility of Governments everywhere to change behaviour to reduce our greenhouse gas emissions.

“The most effective way to achieve this is to put a price on carbon. At a time when national Budgets are under pressure, it makes sense to choose tax options that can have external benefits such as reducing import dependency, reducing emissions and driving innovation.”

Householders will feel the pinch as taxes increase across the board, with the carbon tax, while beneficial to curbing emissions, adding to the Irish tax payers’ burden.

Alison Brown

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