Oireachtas Joint and Select Committees

Wednesday, 16 May 2018

Joint Oireachtas Committee on Communications, Climate Action and Environment

Implementation of National Mitigation Plan: Discussion (Resumed)

3:00 pm

Mr. Joseph Curtin:

I am grateful for the questions. Deputy Stanley raised the issue of carbon tax. I will address this and then ask Mr. Muenchmeyer to answer the sectoral questions. Deputy Stanley put his finger on the button. It is the distributional issues around the carbon tax that make it difficult to achieve. For that reason, a 1.5% reduction in the lower 20% rate of tax to start off with would yield a tax reduction in the region of €900 million or approximately €500 per person. The tax credits and tax-free allowances have been reduced very dramatically. The tax-free allowance kicks in at about €2,000, is that correct?