Willie Penrose (Longford-Westmeath, Labour)
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Question 94: To ask the Tánaiste and Minister for Finance his proposals for a review of current VAT classifications with a view to reducing the rate of VAT applied to certain environmental goods and services in regard to the commitment contained in the Programme for Government; and if he will make a statement on the matter. [29579/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Programme for Government contains a commitment to examine the scope for reducing the VAT rate on environmental goods and services from the standard VAT rate of 21 per cent to the reduced rate of 13.5 per cent. I should mention that this is just one of a number of initiatives in the Programme aimed at delivering a cleaner environment.

In carrying out this examination account will be taken of the growing range of environmental and renewable energy products which present opportunities to reduce our dependence on conventional energy systems and can make a contribution to tackling Climate Change. For example, energy-efficient insulation materials, renewable energy systems including wind, solar and geothermal systems, and the options arising in the bio-energy crop sector will be examined.

In considering a change in VAT arrangements for these, or indeed any other, goods and services, it is important to bear in mind that the treatment of goods and services is subject to EU VAT law with which Irish VAT law must comply.

It is important however to point out that the reduced rate of VAT of 13.5 per cent may currently be applied to insulation materials and renewable energy systems where these products are supplied and installed as a single contract and where the VAT-exclusive cost of the goods does not exceed two-thirds of the total VAT-exclusive charge to the customer. I understand that the bulk of supply and install contracts are likely to meet this so-called "two-thirds" rule, resulting in the reduced VAT rate of 13.5 per cent rate being applied. Consequently, under existing VAT arrangements, the reduced VAT rate can apply to environmental products where they form part of such a supply and installation arrangement.

Therefore the current VAT classifications will be examined to ascertain what scope exists within EU VAT law to further extend the application of the reduced VAT rate in the area of environmental goods and services. This and other measures under the Programme for Government clearly demonstrate the Government's commitment to addressing the environmental challenges which we face.

Brendan Howlin (Wexford, Labour)
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Question 96: To ask the Tánaiste and Minister for Finance the number and percentage of income earners who are paying tax at the higher rate and at the standard rate for 2006; the anticipated figures for each category for 2007; and if he will make a statement on the matter. [29568/07]

Róisín Shortall (Dublin North West, Labour)
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Question 121: To ask the Tánaiste and Minister for Finance the number and percentage of income earners who are paying tax at the higher rate and at the standard rate for 2006; the anticipated figures for each category for 2007; the number and percentage of taxpayers paying some tax at the higher rate; and if he will make a statement on the matter. [29592/07]

Kieran O'Donnell (Limerick East, Fine Gael)
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Question 177: To ask the Tánaiste and Minister for Finance the number and percentage of earners exempt from tax; the number and percentage paying tax at the standard rate; the number and percentage paying tax at the marginal rate; and if he will make a statement on the matter. [30011/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 96, 121 and 177 together.

The information requested by the Deputies is set out as follows:

The figures are estimates from the Revenue tax forecasting model using actual data for the year 2004 adjusted as necessary for income and employment growth for the year in question. It is therefore provisional and likely to be revised.

It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Simon Coveney (Cork South Central, Fine Gael)
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Question 97: To ask the Tánaiste and Minister for Finance if he will promote the introduction of a carbon tax in the lead up to budget 2008; and if he will make a statement on the matter. [28999/07]

Simon Coveney (Cork South Central, Fine Gael)
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Question 113: To ask the Tánaiste and Minister for Finance if he will introduce a carbon tax; the way he expects this tax to operate; and if he will make a statement on the matter. [29000/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 97 and 113 together.

The Programme for Government signals that a carbon tax/levy would be introduced over the lifetime of this Government. The matter of the introduction of a carbon tax is one of the issues to be considered by the new Commission on Taxation to be established under the Programme.

Consequently, at this stage, the precise design of such a tax has yet to be determined. This will, of course, form an important part of the normal deliberative process of the Government in setting fiscal and environmental policy. Deputies will recall that the Programme for Government indicates that the phasing-in of a carbon levy will be on a revenue neutral basis, so it is not intended that its introduction will lead to any net Exchequer revenue increase or net addition to the overall tax burden.