Written answers
Tuesday, 29 July 2025
Department of Finance
Tax Rebates
Pearse Doherty (Donegal, Sinn Fein)
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709. To ask the Minister for Finance the estimated first year cost of reversing the carbon tax increase in May from the 1ST of November. [43649/25]
Pearse Doherty (Donegal, Sinn Fein)
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710. To ask the Minister for Finance the estimated first year cost of not going ahead with the carbon tax increase in October. [43650/25]
Pearse Doherty (Donegal, Sinn Fein)
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753. To ask the Minister for Finance the cost of not continuing with the scheduled carbon tax increases in 2026. [43875/25]
Pearse Doherty (Donegal, Sinn Fein)
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754. To ask the Minister for Finance the cost of reversing the carbon tax increases of 2025 and not continuing with the scheduled carbon tax increases in 2026. [43876/25]
Pearse Doherty (Donegal, Sinn Fein)
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755. To ask the Minister for Finance the cost of reversing all carbon tax increases of 2022 and not continuing with the scheduled carbon tax increases in 2026. [43877/25]
Pearse Doherty (Donegal, Sinn Fein)
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756. To ask the Minister for Finance the cost of reversing all carbon tax increases of 2020 and not continuing with the scheduled carbon tax increases in 2026. [43878/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 709, 710, 753, 754, 755 and 756 together.
In relation to 43649/25: I am advised by Revenue that the estimated cost of reversing the May 2025 increase to Carbon Tax on non-propellant fuels is shown in the following table:
| Period | Carbon Tax €m | VAT €m | Total €m |
|---|---|---|---|
| First Year 2025 | 3.6 | 0.4 | 4.0 |
| Full Year | 64 | 5 | 69 |
In relation to 43650/25, 43875/25, 43876/2, 43877/25 and 43878/25: I am advised by Revenue that the estimated full year revenues foregone from not proceeding with the planned increase in the Carbon Tax under Budget 2026 and of reversing the Carbon Tax budget increases introduced in each of the previous five years are set out in the following table.
| Budget Action | Proposal | Carbon Tax €m | VAT €m | Total €m |
|---|---|---|---|---|
| Suspend at 2025 | Remain at €63.50 per tonne of CO2 emitted | 143 | 14 | 157 |
| + Reverse 2024 | Revert to €56 per tonne of CO2 emitted | 286 | 28 | 314 |
| + Reverse 2023 | Revert to €48.50 per tonne of CO2 emitted | 429 | 42 | 471 |
| + Reverse 2022 | Revert to €41.00 per tonne of CO2 emitted | 572 | 56 | 628 |
| + Reverse 2021 | Revert to €33.50 per tonne of CO2 emitted | 715 | 70 | 785 |
| + Reverse 2020 | Revert to €26 per tonne of CO2 emitted | 858 | 84 | 942 |
These estimates are based on the latest Revenue volumes data and do not account for any behavioural change in 2026.
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