Revenues from Carbon Tax – what would you do with it?

Carbon Tax was introduced in Ireland in 2009. Since then it has raised over €3 billion in revenue for the Exchequer.


The current rate of the Carbon Tax is €20 per tonne on all applicable fuels. The Climate Change Advisory Council have recommended the rate be increased to €80 per tonne by 2030, while the Joint Oireachtas Committee are of the view that a carbon price trajectory would play an important role in the State’s response to climate change.


The Department of Finance has opened a Consultation on the options for the use of revenues raised from increases in Carbon Tax. Responses will inform the Tax Strategy Group process and will also feed into the Government’s considerations in reviewing proposals in respect of Carbon Tax ahead of Budget 2020.


A copy of the Consultation document is available from the Department’s website.


The SFA plan to respond to this Consultation and are seeking members views and opinions to the below questions. In order to draft our submission in enough time, we would ask that you return your contribution before close of business on Wednesday, 19 June to




Do you agree that additional revenue raised as a result of an increase in the rate of Carbon Tax above €20 per tonne, should be used:

  1. To increase the fuel allowance to compensate those households likely to suffer from fuel poverty;
  2. To enhance the current grants towards the cost of energy efficiency improvements in the homes of those most vulnerable to fuel poverty through the Better Energy Homes scheme or the SEAI Better Energy Warmer Homes scheme;
  3. To fund sustainable transport including cycling infrastructure and public transport;
  4. For broad climate actions (e.g. earmarked to the Climate Action Fund or similar);
  5. To return the proceeds by way of a dividend to citizens or households through the social welfare and/or tax system;
  6. To be set aside to meet any fines the State is liable to pay arising from failure to meet our climate targets;
  7. To act as a buffer against increasing the cost of doing business for businesses with no realistic short to medium term alternative to continued fossil fuel use and for whom fossil fuels constitute a large amount of overall business expenditures (e.g. by enhancing the Diesel Rebate Scheme);
  8. To incentivise business moving away from the use of fossil fuels to more sustainable production methods;
  9. by the Exchequer for general government expenditure;

Otherwise please provide details of your preferred option if different to any of those listed above.

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