Tax Data

Thursday, 20 June 2024

Questions (96)

Pearse Doherty

Question:

96. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question Nos. 292 of 9 April 2024 and 194 of 11 June 2024, if the projected carbon tax annual revenue provided in Parliamentary Question No. 292 of 9 April 2024 is inclusive of VAT; if not, if the figures could be supplied inclusive of VAT; the reason the ready reckoner provides additional revenue of €160 million for a €7.50 increase in the rate of carbon tax per tonne while the additional carbon tax revenue in 2026, following a €7.50 increase in the rate of carbon tax per tonne, is €66.2 million; and if he will make a statement on the matter. [26724/24]

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Written answers

Minister for Finance

The figures supplied in response to Parliamentary Question No. 292 of 9 April 2024 are projections of future carbon tax revenue yields estimated by the Department of Finance based on VAT exclusive excise data from the Revenue Commissioners and forward projected estimates of energy use from the Sustainable Energy Authority of Ireland (SEAI) which take into account agreed national Climate Action policy measures. The figures in the Department of Finance estimates are exclusive of VAT.

As set out in previous responses to the Deputy, the Department of Finance analysis is a point in time exercise and it is anticipated that updated energy use and excise data will be available in the coming weeks which the Department will use for further updated analysis on potential fiscal impacts arising from the climate transition.

I am advised by Revenue that the estimate contained in its Ready Reckoner is VAT inclusive. The estimate exclusive of VAT is €146m.

I am further advised by Revenue that the estimates provided in the Ready Reckoner are calculated by applying the €7.50 per tonne increase to the most recently available carbon data relating to mineral oils, solid fuels and natural gas, and do not take into account any behavioural change.