James Lawless (Kildare North, Fianna Fail)
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138. To ask the Minister for Finance if the proceeds of the carbon tax are used for a particular purpose or fund or if they contribute to the general taxation fund. [23527/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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Revenue raised from carbon tax is remitted to the Exchequer and therefore used to fund public services, including measures to address energy poverty such as the National Fuel Allowance Scheme and the Better Energy Warmer Homes Schemes.  

To date carbon tax revenues have not been hypothecated for any exclusive purpose. Hypothecation in general is not a feature of the Irish tax system as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time, constraining expenditure decisions and potentially distorting the allocation of resources, which can result in reduced value for money and sub-optimal outcomes.

However, in line with the recommendation of the Joint Oireachtas Committee on Climate Action, my Department has launched a public consultation on the options for the use of revenues raised from increases in the Carbon Tax, including hypothecation options. The consultation is open for submissions until 28th June and is accessible at the following link: h

The feedback received from this consultation will help to inform future Carbon Tax policy options.