An independent TD has claimed that the benefit of an incremental rise in fuel excise duty will be “wiped out” by an increase in the carbon tax.
The gradual increase in excise duty on green diesel, petrol and diesel, which will take place in three stages over the coming eight months, was announced as part of the government’s €1.2 billion cost of living support package.
By June 6, excise duty will rise by 1c/L on green diesel, 6c/L on petrol and 5c/L on diesel.
These rates will then increase by a further 1c/L, 6c/L and 5c/L on green diesel, petrol and regular diesel respectively, by September 1.
There will be a final increase by October 31 of another 3c/L on agri-diesel, 8c/L for petrol and 6c/L for regular diesel.
Independent TD for Cork South-West Michael Collins called on Minister for Finance Michael McGrath to scrap the planned carbon tax increase that is due to be applied to fuels, including household fuels, from May 1, 2023.
“I accept that the incremental rise in excise duty avoids the cliff edge scenario that farmers, households and businesses were fearing.
“But the fact of the matter remains that this government is still ploughing ahead with its intention to take €623 million in carbon tax from the economy in 2023.
“This includes a 19-cent carbon tax increase that will be applied to kerosene heating oil and a 16.85 cent rise in gas heating related carbon tax.
“At that point, if energy prices continue to rise, or at a minimum fail to stabilise, then government will be acting like leeches on the public’s income,” Collins claimed.
The TD said that the carbon tax is a “blunt tool” which has no clear benefit to justify it.
“It has however a range of solid reasons against it, not least because of the way in which it indiscriminately and disproportionately impacts rural Ireland.
“If the government is serious about helping people address the borderline criminal rate of energy then it must immediately abandon its plans to increase the carbon tax,” Collins said.