TDs in the Rural Independent Group will move a motion in the Dáil this week to axe the carbon tax, which, they say, will save households almost €8,000 between now and 2030.

The motion will be proposed tomorrow (Wednesday, April 26) and, if passed, would also prohibit the re-introduction of a carbon tax in any form without the passage of a democratic referendum, according to the group.

According to the group, the average farmer will have to pay over €600 in carbon taxes this year, to operate the family farm.

In overall terms, this translates to the government collecting €64 million in carbon taxes – based on its figures – from farmers’ pockets in 2022, the group said.

In a statement, the group’s leader, Deputy Mattie McGrath said:

“The main purpose of the government’s carbon tax is to raise revenues, not lower greenhouse gas (GHG) emissions.

“The taxation policy has failed, as it has not delivered on the promise of cost-effective emissions reductions. Instead, it is causing serious and harmful economic effects that are increasing costs, scaring away investment, and deterring entrepreneurship.”

The carbon tax, he said, indisputably adds to the cost of living, making households and families pay higher electricity and fuel bills, costing businesses more to operate, and raising the prices of everything else.

“Every Irish person’s cost of living is unnecessarily higher because of the carbon tax, which is now a central contributing factor to Ireland’s record cost-of-living increases,” he said.

He added that such a tax is supposed to be a disincentive to using certain types of energy, but that it can only work when there are alternative forms of that energy available.

“However, the tax is not working in Ireland, as many people across all economic sectors are desperately trying to reduce their energy usage and have little to no access to alternatives,” Deputy Mattie McGrath said.

He said that average families would be more than €520 better off this year alone, under the Rural Independent Group’s proposal to axe the tax, and over eight years, that would add up to a saving of more than €8,000.

“The government’s figures show that the carbon tax will cost the average household €521 this year, climbing to €1,225 a year by 2030,” he continued.

“However, over the next eight years to 2030, the government tax will cost average households a staggering €7,860, and place an even greater cost on small businesses, farmers, and transport operators.

“The government will claim that carbon taxes are ringfenced for climate action policies – but we know that that is simply not the case,” Deputy McGrath said.

In 2021, €652 million was raised in carbon taxes in Ireland, but only €130 million of that was ringfenced, highlighting that only a small portion of the carbon taxes being raised here are being spent on climate action measures, Deputy McGrath added.