The carbon tax will increase by €6t of carbon from today, Friday, May 1, in line with a measure that was announced in Budget 2020 last October.
However, in light of the Covid-19 impact on the economy, there are still calls for the increase to be postponed to a later time.
Sinn Féin TD Pearse Doherty said today that Revenue should defer the increase in the tax “at a time when many households have seen their incomes collapse as a result of Covid-19”.
Yesterday, I wrote to Revenue calling for the planned increase in carbon tax to be deferred in light of the financial crisis that has hit workers and families throughout the state.
“Over half a million people have lost their jobs in the past two months and households face significant financial hardship in the weeks and months ahead,” Doherty said today.
The tax now stands at €26t of carbon, with further increases expected until 2030.
“As noted by the ESRI [Economic and Social Research Institute] in their report on the financial impact of carbon tax on households, increases in this tax will predominantly hit low-income and rural households,” the Donegal TD noted.
While this was the case in normal times, its effect is even greater today when so many have lost their jobs or had their incomes reduced. Deferring this tax increase is the right thing to do by these workers and families – ensuring that their income loss is not compounded by price increases when no alternatives exist.
“I am calling on Revenue to defer this increase, with necessary changes made to legislation by the Oireachtas at the earliest opportunity,” Doherty urged.
He concluded: “The priorities in the months ahead must be protecting the incomes of households, and then preparing a recovery plan that transforms our economy and invests in green technologies and alternatives that will enable a Just Transition.”