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VAT will be charged on carbon tax as citizens bear the brunt of government failure - Martin Kenny TD

4 April, 2019 - by Martin Kenny TD

Sinn Féin TD for Sligo, Leitrim, North Roscommon and South Donegal, Martin Kenny said that carbon tax is already unfair on low or middle income households, but now it seems that VAT will be charged on that tax too.

Speaking in Leinster House today, Deputy Kenny said:

“It amounts to a tax upon a tax. In response to a parliamentary question from Sinn Féin, the finance minister confirmed that VAT is charged on the full price, including VAT or other taxes.

“This will disproportionately punish those on low or middle incomes, while big business and corporate polluters will not be made to pay their fair share.

“There was a study undertaken by the ESRI in 2008 and 2018 which confirmed that lower income households will suffer disproportionately.

“The fact remains that the government has failed to provide any real alternatives to citizens to allow them to change their behaviour.

"What is a person on an average wage to do with their diesel car, when they cannot afford to go out and buy an electric one?

"What is a person who has a gas boiler in their house to do to reduce their carbon emissions? What can a tenant do about their landlord’s choice of heating apparatus?

“The government is passing the buck to ordinary households for its policy failures. It provides the illusion that the government is doing something about climate change, when in fact it is not coming up with solutions that work.”

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