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

Senator Higgins raised the performance of the large cases division in the Revenue Commissioners. I am committed to coming back to her in the context of the debate. The high-wealth individuals division is dealing with approximately 2,700 high net worth taxpayers. This also includes spouses and related entities. On average, the division carries out between 250 and 300 interventions per annum with settlements in the region of between €40 million and €50 million achieved.

A similar case management approach is taken in Revenue's medium enterprise division, which deals with the tax affairs of individuals with worth of between €10 million and €20 million. A report on the methodology used to identify such high-worth individuals above this threshold is available on the Revenue website. Senator Higgins asked about the impact of the high-wealth individuals division's interventions. As I said, it is between €40 million and €50 million.

I thank Senator Higgins for her acknowledgement of the role of carbon taxation in this debate and her support for that measure. The rebate scheme for diesel is at a higher level than it has been in recent years but I believe this scheme is worth retaining in recognition of many of the costs and challenges that sector is facing. I am aware of the calls for me to phase out this scheme immediately. I do not believe that would be the right thing to do. What I want to indicate this evening, as I have done before, is to say that over time, we need to look at how we can scale back the scheme. If we look at many of the challenges the sector is facing at the moment, for example, with regard to Brexit and the fact that the price of its fuel is going up in any event, as has been evident for some time, I believe this particular relief scheme is worth retaining for now given the importance of the sector to the economy.

It is worth pointing out that the reason some of the protests are taking place at the moment is not a sense that this scheme is too generous.It is a fact that many of those who are protesting at the moment do not want me to go ahead with the increase in carbon pricing, or want the diesel rebate scheme to be extended.

On the Senator’s point about fuel for the aviation sector, that debate is coming. However, the Senator will be aware that currently taxation on fuel for international transport is a difficult area for the State to take unilateral action. It needs to be done in conjunction with other colleagues within the European Union. Currently, Ireland is engaging with the European Commission in regard to its proposal on revising the energy taxation directive to take greater account of environmental concerns and the taxation of energy products. I believe there is a debate approaching on the taxation of the aviation sector. It is not a change that Ireland could bring about on its own. I have to say that I would be cautious about change in that area at moment. We are an island economy, and we depend greatly on access in and out of our country. I do not want to do anything that would jeopardise that access or undermine what is an important part of our economy.

We are doing something that few governments are in a position to do at the moment, and that is to make credible commitments to change the taxation on carbon in each budget. Budget 2022 was the third budget in which we have done this. That is an important way we could change the use of carbon in the future. For those reasons, and while I thank the Senator for the support she has offered for the changes we are making on carbon taxation, I am not in a position to accept the report that she is proposing.