The Tánaiste has said that a potential increase in the carbon tax will be examined again as part of the upcoming Budget.
Earlier this month, the Government chose to delay a planned rise in the carbon tax, which had been due to come into effect in May, pushing the decision back to October’s Budget, reports Breaking News.
At present, the carbon tax on petrol and diesel stands at €71 per tonne of carbon dioxide emissions.
He said the timing was not appropriate for an increase and that the matter would instead be reviewed during Budget discussions, reports Breaking News.
For other fuels such as home heating oil, the current rate of €63.50 per tonne had been scheduled to rise to €71 next month.
Postponing the increase until October is expected to reduce revenue by €22 million, reports Breaking News.
The decision formed part of a wider package now totalling over €750 million aimed at addressing rising energy costs linked to the war in Iran.
It followed nationwide fuel protests, which included blockades of key infrastructure, reports Breaking News.
Speaking to reporters on Tuesday, Mr Harris said: “We’ve made decisions in relation to carbon tax.
“Acknowledging that we believe in the principle of carbon tax – we have a carbon tax – the time wasn’t right to put it up and deferring that decision for further consideration in the Budget, reports Breaking News.
The delay drew criticism from Green Party leader Roderic O’Gorman in the Dáil, who said it had “shattered” cross-party support for the carbon tax for relatively little financial gain.
Mr O’Gorman said the move had “pulled the rug” from under Government TDs who had defended the tax for years, reports Breaking News.
“Because by deferring the increase, you’ve ceded the ground those who say the carbon tax is the root of all evil, and you’ve lost that case for that constant expansion of that pool of money for the (Agri-Climate Rural Environment Scheme) scheme, for warmer homes, for retrofit and ultimately, it hasn’t won you one iota of thanks for the people who’ve always opposed this particular measure.”
Mr Harris responded that he was not seeking approval from political opponents, saying: “I do look for ways of assisting people, deputy, and you’ve got to bring the people with you too, reports Breaking News.
He added: “It is an important form of tax revenue, but you also have to look at the reality in terms of the cost of filling the home heating oil, we had to look at the reality in terms of green diesel.
“I think it did not make sense to decide to tell people that we were going to further increase the cost of their home heating oil, reports Breaking News.
“But I think, I think there also needs to be a sense of perspective in relation to this.
“That decision hasn’t resulted in any reduced amount of money being spent on the Climate Action Fund or on the retrofitting programme or on the fuel amounts, because it’s €22 million, it’s 2 per cent of the total amount we expect to take in (from the carbon tax), reports Breaking News.
Mr Harris noted that the carbon tax framework had been introduced before the wars in Ukraine and Iran.
“You can believe in a carbon tax and also believe that actually now might not have been the right time to further increase it, reports Breaking News.
Mr O’Gorman warned that delaying the increase could create pressure to postpone it again in October.
He asked whether the Tánaiste remained committed to raising the carbon tax in the Budget, reports Breaking News.
Mr Harris replied: “No matter what taxation measure you ask me about, all taxation measures are a matter of consideration at the Budget. The Tax Strategy Group in my Department looks at all things, and I’m committed to the carbon tax, committed to the legislation around the carbon tax, I’m committed to the carbon tax growing as part of our climate action in this country,” reports Breaking News.
“But I’m also committed to looking at how we can assist people with their energy costs in the here and now,” reports Breaking News.
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