Written answers

Thursday, 12 June 2025

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
Link to this: Individually | In context

293. To ask the Minister for Finance the cost to reverse the carbon tax increase for petrol and diesel, in each of the years 2020 to 2025, as well as the planned increase in 2026, in tabular form. [31585/25]

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
Link to this: Individually | In context

294. To ask the Minister for Finance to provide a breakdown of the revenue earned from the carbon tax diesel, in each of the years 2020 to 2025, in tabular form. [31586/25]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 293 and 294 together.

In relation to the Deputy's first question on what the cost would be to reverse the carbon tax increase for petrol and diesel in each of the years from 2020 to 2025, as well as the planned increase in 2026: I am advised by Revenue that the estimated full year revenues forgone in 2026 from not proceeding with the planned increase in the Carbon Tax for petrol and diesel under Budget 2026 and of reversing the Carbon Tax budget increases for petrol and diesel introduced in each of the previous five years are set out in the following table. These estimates are based on the latest Revenue volumes data and do not account for any behavioural change in 2026.

Action Proposal Carbon Tax €m VAT €m Total €m
Suspend 2025 Remain at €63.50 per tonne of CO2 emitted 79 8 87
+ Reverse 2024 Revert to €56 per tonne of CO2 emitted 159 17 176
+ Reverse 2023 Revert to €48.50 per tonne of CO2 emitted 238 25 263
+ Reverse 2022 Revert to €41.00 per tonne of CO2 emitted 318 34 352
+ Reverse 2021 Revert to €33.50 per tonne of CO2 emitted 397 42 439
+ Reverse 2020 Revert to €26 per tonne of CO2 emitted 476 50 526
In relation to the Deputy's request to provide a breakdown of the revenue earned from the Carbon Tax on Diesel in each of the years from 2020 to 2025: I am advised by Revenue that a breakdown of carbon tax receipts, across all fuel and energy types including diesel, for 2024 and previous years is published on the Revenue website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/excise/receipts-volume-and-price/excise-receipts-commodity.aspx.

The provisional year-to-date May 2025 carbon tax receipts for diesel are €216m.

I am further advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield from diesel using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated on the carbon tax applied on diesel over each of the past six years is provided in the table below.

Year Estimated VAT €m
2020 16
2021 22
2022 29
2023 34
2024 37
2025* 16
*YTD May 2025

Comments

No comments

Log in or join to post a public comment.