Dáil debates

Tuesday, 15 October 2019

Ceisteanna - Questions

Cabinet Committee Meetings

4:30 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

On carbon tax, Deputy Boyd Barrett's numbers are incorrect. The carbon tax is roughly paid 50% by businesses and 50% by households. The Deputy made the incorrect assumption that it is all paid by households. That is not the case because businesses clearly use a lot of fossil fuels as well. The carbon tax increase will raise in the region of €90 million. Half of this will be paid by households. If, therefore, one divides €45 million by the number of households, namely, 2 million, the average cost per home will be just under €30 for next year. The increase in the fuel allowance protects 22% of the poorest households in the State. In fact, they are slightly better off in cash terms as a consequence of a decision we made in respect of carbon tax. Fundamentally, and this is just like many other things we tax. The amount of carbon tax somebody pays is linked to the amount of carbon they produce, not the amount they earn.

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