Dáil Éireann Debate, Tuesday - 7 July 2026
254. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the estimated full-year revenue that would be generated by establishing a new rate of corporate tax of 50% on the profits of all energy companies; and if he will make a statement on the matter. [51300/26]
Amharc ar fhreagra259. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Finance the estimated additional full-year revenue of increasing corporation tax to 20% for companies involved in fossil-fuel production and refining; and if he will make a statement on the matter. [51305/26]
Amharc ar fhreagraI propose to take Questions Nos. 254 and 259 together.
As a small open economy, connected to Europe, the US and the wider world, Ireland is committed to a competitive, transparent and stable corporation tax system.
Imposing additional taxes or levies on certain sectors would involve increased complexity and could change the attractiveness of Ireland's corporate tax regime. While it is possible that imposing an additional fiscal burden could lead to theoretical gains, there is a risk that this imposition could lead to lower levels of economic activity and to companies passing the additional burden onto their suppliers or consumers.
In the context the current energy situation, it is important to carefully consider the potential for unintended consequences that may arise from the design and implementation of additional taxes or levies on certain sectors during periods of price volatility, including longer-term effects on investment, market behaviour, and energy supply.
In respect of Question No 54 (Ref: 51300/26), I am advised by Revenue that the gross additional yield from increasing the corporation tax rate from 12.5% to 50% on taxable profits of all energy providers is tentatively estimated to be in the region of €727 million. This estimate is based on the 2024 Corporation Tax returns of energy providers, the latest year for which fully analysed data are available and assumes no behavioural change in response to the proposed increase in rate. I am further advised by Revenue that this yield is based on the industry code assigned to companies on Revenue records and does not include any yield associated with subsidiaries of these companies not primarily involved in the sectors mentioned in the question.
In respect of Question No. 259 (Ref: 51305/26), I am advised by Revenue that the gross additional yield from increasing the corporation tax rate from 12.5% to 20% on taxable profits of fossil fuel companies is tentatively estimated to be in the region of €50 million. This estimate is based on the 2024 Corporation Tax returns of energy providers, the latest year for which fully analysed data are available and assumes no behavioural change in response to the proposed increase in rate.
Regarding energy affordability, the Government is conscious of the increased financial pressure on households and businesses in recent months arising from 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.
In June 2025, the Department of Climate, Energy and Environment established the National Energy Affordability Taskforce (NEAT) to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewables commitments, and protecting security of supply and economic stability.
The recent conflict in the Middle East underlines, once again, the Government’s position that the best long-term approach for Ireland to insulate consumers from volatility on international wholesale energy markets is through continued investment in our grid and retrofitting of homes and businesses, as well as the accelerated deployment of renewables across all sectors in the State.
