Irish Government Plans Carbon Tax Raise
The Irish Government recently announced plans to quadruple the carbon tax rate by 2030, as part of a major new package of policies aimed at combating climate change.
According to the Government’s new Climate Action Plan, “taxation policy can play a central role in incentivizing the behavioral change necessary to reduce greenhouse gas emissions.” The Plan commits the Government “to having in place a taxation framework, which plays its full part in exerting, along with other available policy levers, the necessary leverage to reduce our emissions.”
The carbon tax is currently charged at EUR20 per ton of CO2 equivalent. The charge is paid by the importer or the extractor on the content of fossil fuels. The rate has not changed since 2014.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look