Dáil Éireann Debate, Tuesday - 28 April 2026
445. Deputy Ged Nash asked the Tánaiste and Minister for Finance the projected yield from a windfall tax on energy profits, modelled on the same basis as the temporary solidarity contribution in 2022 and 2023, if applied to profits in 2025 and projected profits in 2026; and if he will make a statement on the matter. [30974/26]
View answer446. Deputy Ged Nash asked the Tánaiste and Minister for Finance the projected yield from a windfall tax on energy profits for 2024, 2025 and 2026, respectively, if the corporation tax rate were increased to either 25% or 50%; the estimated yield, if a 25% levy were placed on those profits instead, in tabular form; and if he will make a statement on the matter. [30975/26]
View answerI propose to take Questions Nos. 445 and 446 together.
I am advised by Revenue that the latest available year for statistical information on company profits, as reported on CT1 tax returns, is 2023. As such, it does not have information currently available upon which it can base an estimated policy costing involving 2025 profits. Statistical information on profits in relation to 2025 CT1 returns will not be available for analysis until 2027. Revenue holds no information in respect of projected profits in 2026. Furthermore, while my Department prepares forecasts of Corporation Tax for future years, including 2026, these are based on macroeconomic data and do not incorporate company-specific projections.
It may be of assistance to the Deputy to note that the Temporary Solidarity Contribution (TSC) collected €167.2 million in 2023 and €104.1 million in 2024, as can be seen in the Department of Finance’s Fiscal Monitor December 2024 which is available at: https://www.gov.ie/en/department-of-finance/publications/fiscal-monitor-december-2024/
The TSC was a temporary and time-limited emergency intervention, arising out of the increase in energy prices at the commencement of the war in Ukraine. It was introduced in line with Council Regulation (EU) 2022/1854 of 6 October 2022 to tackle windfall gains being made in the energy sector at the time. Specifically, the TSC was levied on fossil fuel producers and applied at a rate of 75 per cent on a measure of surplus taxable profits in both fiscal years 2022 and 2023.
It is important to note that, while the TSC was administered by the Revenue Commissioners, it was not a tax measure; it was a solidarity contribution arising from an energy Regulation agreed at EU level. As such, the TSC formed part of a co-ordinated European response, reflecting the highly interconnected nature of EU energy markets and a view that an emergency intervention to mitigate the effects of high energy prices at the time could not be sufficiently achieved by Member States individually.
The European Commission have produced a communication, AccelerateEU, which addresses the EU’s rising energy costs on volatile fossil fuel markets and aims to accelerate the clean energy transition and strengthen EU energy resilience. The communication outlines several policy initiatives to address the current energy situation.
The Government is conscious of the increased financial pressure on households and businesses arising from the ongoing conflict in the Middle East. In response, the Government has introduced temporary and targeted measures to reduce fuel prices for households and businesses, with additional supports for key sectors of the Irish economy. This includes the reduction of excise on petrol and diesel, extending the fuel allowance season by a further four weeks, and targeted relief to haulage and bus passenger operators. Measures have also been taken to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs.
The ongoing conflict in the Middle East underlines, once again, why we must accelerate the deployment of renewables across all sectors, continue to invest in our grid, and continue to invest in retrofitting of homes and businesses across the country.
