Environment-related taxes levied on agriculture reached €68 million in 2021, however the sector only accounts for 1.4% of the total figure for the Irish economy, according to the Central Statistics Office (CSO).
Figures recently published by the CSO show that total environment-related taxes collected in Ireland increased by 7% last year, reaching €4.8 billion. This figure is made up of 64% energy and 36% transport taxes.
Looking at energy – mainly transport fuels – and transport taxes – mainly vehicle registration tax (VRT) and motor tax – in the agriculture sector, including forestry and fishing, they accounted for €53 million and €15 million respectively.
An environment tax, as defined by EU regulation, is based on a physical unit, such as hydrocarbon fuel, which is proven to negatively impact the environment.
In terms of energy, this figure relates to the taxes paid on fuel used by those involved in the agriculture sector, for their machinery and all other activities where hydrocarbon fuel – the tax base – is consumed.
Environment taxes in agriculture reached their peak in 2015, when a total of €81 million was collected, including €73 million in energy taxes. Transport taxes ranged between €5-8 million from 2012 onwards before they doubled in 2018, reaching €12 million.
All environment-related taxes
The majority (58%) of total collected environment taxes in Ireland last year came from households; 28% from the service sector; and 12% from industry.
This equals €2.8 billion in the household sector; €1.4 billion in the service sector; and €600 million in industry, compared to €68 million in the agriculture sector.
Total energy taxes collected last year amounted to €3.1 billion. Taxes on transport fuels accounted for 63% of these, while the combined carbon tax, carbon credits and the public service obligation (PSO) levy accounted for 33%.
Transport taxes accounted for €1.7 billion, while the VRT accounted for 44% of these. Only 0.3% (€13 million) of all environment taxes were collected in the form of pollution and resource taxes – a landfill levy; a plastic bag levy; a fisheries levy; or a petrolium act levy.
Environment taxes accounted for 9% of total taxes in 2012, compared to 6% in 2021, according to CSO statistician in the environment and climate division, Gerard Keogh.
The CSO notes that environment taxes paid in 2021 were adversely impacted by the Covid-19 pandemic, particularly transport fuels, and taxes reported do not have a VAT component as VAT is recorded separately in the National Tax List.