Any Budget increases to carbon tax will be gradual, says Finance Minister
Finance Minister Paschal Donohoe said he would prefer to deliver small increases to the carbon tax.
Finance Minister Paschal Donohoe has said any increases to carbon taxation in the Budget will be gradual.
Mr Donohoe said the Government agreed to base Budget 2020 on the assumption that there will be a no-deal Brexit and ruled out any reductions in personal taxation.
A Department of Finance document published this year has suggested that a 10 euro carbon tax hike in the Budget would be effective.
I see any changes in carbon taxation being very different to the other tax choices that I've made Paschal Donohoe
Mr Donohoe did not say how much a carbon tax in Budget 2020 will cost but said any increases would be gradual.
He said: “If we do decide to make a change in carbon taxation in Budget 2020, that revenue will then be used in a way to either help people cope with the change they have to make to deal with climate change and changing their behaviour, or we will use it in investing in the kinds of funds, the kinds of plans that are helpful for families and for businesses making a change.
“So I see any changes in carbon taxation being very different to the other tax choices that I’ve made.
“For a change in the price of carbon, which is something that is very sensitive to families and to businesses all over the country, we are better off having clarity regarding a set of gradual increases, than making a very big change and finding out that the argument cannot be won in relation to it,” he said.
Budget 2020 will be announced on October 8.