Oireachtas Joint and Select Committees

Tuesday, 27 April 2021

Committee on Budgetary Oversight

Draft Stability Programme Update: Engagement with Minister for Finance

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We implemented much of what was proposed by the group in the Finance Bill. There were some very small elements of what it proposed that we did not go with because I had a concern about the proportionality of it but the vast majority of what the TSG proposed in respect of the taxation of vehicles was implemented. In parallel to that we have expected increases in carbon taxation, which are due to happen in this year's budget anyway.

We have not begun the budgetary process yet in respect of any new decisions that might be made in that area. As is always the case in respect of a budget day decision, although I am perhaps saying it earlier in the year than I have previously, we have not made any decisions on this and any decisions will have to await budget day. I am conscious that we made some very fundamental changes in this area very recently and I will want to see how those will bed in and affect behaviour. There are some positive signs that the Deputy will be aware of that they are having an impact in terms of the kind of vehicles being purchased but we barely have a quarter worth of data under our belt yet.

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