TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Carbon Tax increase announced in Budget 2020 takes effect on 1 May 2020

The carbon tax increase announced in Budget 2020 took effect on 1 May 2020 The carbon tax, introduced by the budget in October 2019, added 6.5 cent to every litre of petrol and diesel. However, the tax also introduced a tax increases on home-heating fuels. This increase had been postponed until May 2020.

The tax was raised by €6 to €26 per tonne of carbon dioxide in last year’s budget, and will add €2.73 to a 40 kg bag of coal, 59 cent to a bale of briquettes and €65 to every fill of a 900-litre home heating oil tank. The Government introduced the tax as part of a global deal to cut the level of emissions in Ireland. By increasing the carbon tax, the Government hopes to incentivise citizens to use fewer fossil fuels which cause climate emissions and climate change.

In June 2019, Chartered Accountants Ireland responded to the Department of Finance’s consultation on the options for the use of revenues raised from increases in carbon taxes, saying that to the achieve acceptance taxpayers would have seen a direct link between the carbon tax collected, what the additional revenues are spent on and how they benefit, with revenues from the carbon taxes being ring-fenced and the poorest households protected by a series of targeted reliefs through the tax and welfare system, starting with an increase in the fuel allowance.