Dáil Éireann Debate, Thursday - 6 February 2025
56. Deputy Carol Nolan asked the Minister for Finance if the revenue accruing from the issuance of excise licenses is ring-fenced for expenditure on measures specific to the sector subject to the licence; and if he will make a statement on the matter. [3665/25]
View answerThe Deputy should note that with limited exceptions such as the treatment of the carbon tax receipts, hypothecation is not a feature of the Irish tax system as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time. Such reduced flexibility could act as a constraint on expenditure decisions and could also distort the allocation of resources resulting in the potential for reduced value for money and sub-optimal outcomes.
