Tom Fleming (Kerry South, Independent)
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306. To ask the Minister for Finance his plans to reduce the carbon tax on household fuel as due to the variable inclement weather conditions this tax is imposing additional financial hardship on vulnerable lower income consumers; and if he will make a statement on the matter. [30673/15]

Michael Noonan (Limerick City, Fine Gael)
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Carbon Tax is an environmental tax which was introduced to send a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment.  Carbon tax is seen as a way to promote the reduction in overall emissions in order to reach our EU 2020 emission targets on greenhouse gases.

Carbon tax was introduced in Budget 2010 on a phased basis. Initially it applied only to transport fuels, then to other liquid fuels such as kerosene, agricultural diesel and natural gas and lastly it was extended to solid fuels on a phased basis in 2013 and 2014.

Coupled with the long lead in period to the implementation of carbon tax on solid fuels this Government has also provided, through the Sustainable Energy Authority of Ireland, generous grants via Better Energy Homes and also provides home energy upgrades free of charge to vulnerable households via Better Energy Warmer Homes to reduce dependence on combustion of fossil fuels for home heating. In 2014 the Better Energy programme provided €53m grant support towards €118m energy upgrade works.

Carbon tax promotes energy efficiency, reduces emissions and reduces our dependence on imported fossil fuels.

All taxes are reviewed in the context of the annual Budget.