Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

194.To ask the Minister for Finance the projected revenue raised from legislated increases in the carbon tax in each year from 2025 to 2030 relative to the rate of €56 per tonne in 2024, for example, the revenue raised from the new rate of carbon tax in 2026 relative to a rate of €56 per tonne. [25313/24]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that its Ready Reckoner is available for calculating the annual impact of potential changes in rates of taxation. The Ready Reckoner estimates assume no behavioural change as a result of the additional price increases. This data is available on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/ready-reckoner/index.aspx.

With regard to multiannual projections, as the Deputy will be aware in July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government and is available online : www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.

The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies. The paper builds on previous work on green budgeting published in 2022 and uses a scenario analysis of policy measures on exchequer revenues between 2023 and 2030.

It should be noted that this analysis is a point in time exercise and forecasted revenue is estimated using forward projected estimates of energy use from the Environmental Protection Agency (EPA) and Sustainable Energy Authority of Ireland (SEAI). As previously indicated to the Deputy, projected energy use data is currently being updated and it is anticipated that updated data relating to energy use and tax will be available in the coming weeks. On this basis the Department aims to have updated carbon tax projections and analysis available shortly thereafter.