Róisín Shortall (Dublin North West, Social Democrats)
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110. To ask the Minister for Finance if he has considered introducing a graduated scale of carbon taxation based on the level and type of carbon gas emitted; and if he will make a statement on the matter. [40713/16]

Michael Noonan (Limerick City, Fine Gael)
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The structure and application of all taxes are considered each year by my Department as part of the annual Budget and Finance Bill process, with policy options presented to the Tax Strategy Group. In relation to carbon tax specifically, options around this tax were contained in the 2016 TSG Paper 16/03 Energy and Environmental Taxes, which is published on my Department's website.  

The Deputy will be aware that Carbon Tax was introduced on a phased basis over a period of time, with its application to transport fuels (petrol and diesel) in December 2009, in May 2010 it was extended to non-transport fuels such as kerosene, green diesel, liquefied petroleum gas and natural gas.  When introduced the rate was €15 per tonne of CO2 emissions and this was increased to €20 per tonne in December 2011.  Finally carbon tax was extended to solid fuels at a reduced rate of €10 per tonne from May 2013 which increased to €20 per tonne in May 2014.

In order to achieve the policy aim of reducing carbon emissions, carbon tax is applied per tonne of carbon gas emitted and by its nature a higher level of tax applies to those more carbon intensive fuels. While I keep an open mind on such matters, any changes to the application of carbon tax must take account of the impact on fuel policy and the broader economy.

Niall Collins (Limerick County, Fianna Fail)
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111. To ask the Minister for Finance if the programme for Government commitment (details supplied) will be implemented fully in 2017; and if not, the reason therefor. [40827/16]

Michael Noonan (Limerick City, Fine Gael)
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A capital gains tax (CGT) relief was introduced in the Finance Act 2015 for entrepreneurs disposing of certain business assets. That relief superseded a CGT relief for entrepreneurs introduced in the Finance Act 2014.

The relief introduced in the Finance Act 2015 is much more broadly based than the previous relief and provided that a 20% rate of CGT applies in respect of a chargeable gain or chargeable gains on a disposal or disposals of qualifying business assets made on or after 1 January 2016 up to a lifetime limit of €1m.

As part of the progression of this relief for entrepreneurs, the Finance Bill 2016 provides that the rate of CGT on disposals of such assets on or after 1 January 2017 will be reduced to 10%.

Having reviewed the options available to me in advance of Budget 2017, I determined that the best way to fulfil the intent of the commitment in the Programme, within the resources available, was to reduce the rate applicable under the existing relief to 10%, without changing the other features of the relief for the moment.

The details of the relief will be kept under consideration and, depending on its operation and the resources available, can be revisited in the context of future budgets.