Carbon Tax

To ask the Minister for Finance his plans to defer the carbon tax which is due to come into effect on 1 May 2010 until the economy improves. – Dan Neville.

* For WRITTEN answer on Tuesday, 20th April, 2010.

Ref No: 15291/10

REPLY

Minister for Finance ( Mr Lenihan) : In my Budget Statement of 9 December 2009 I announced that a carbon tax at a rate of €15 per tonne is being introduced on fossil fuels. The tax was applied to petrol and auto-diesel with effect from midnight, 9 December 2009; and will apply from 1 May 2010 to kerosene, marked gas oil (also known as ‘green diesel’ or ‘agricultural diesel’), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order.

In my Budget Statement of 9 December 2009 I announced that a carbon tax at a rate of €15 per tonne is being introduced on fossil fuels. The tax was applied to petrol and auto-diesel with effect from midnight, 9 December 2009; and will apply from 1 May 2010 to kerosene, marked gas oil (also known as ‘green diesel’ or ‘agricultural diesel’), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order.

The Finance Act 2010 has now been enacted. There are no plans to change or defer the implementation date of 1 May 2010.