Sinn Féin TD for Dublin South West Seán Crowe has called on Minister for Finance Paschal Donohoe to defer or scrap the increase in the Carbon Tax, citing concerns about the impact on many households which have literally seen their incomes collapse due to the Covid-19 pandemic. Many areas with low-income, but not exclusively so, are predicted to be hit hardest by this new tax.

Teachta Crowe said:

“Earlier this week, my party wrote to Revenue calling for the planned increase in Carbon Tax to be deferred in light of the financial crisis which has hit workers and families across the State amid the Covid-19 emergency.

“In the first instance, Sinn Féin believe that increased Carbon Tax is the wrong approach, but if the Government are wedded to pursuing them, then the timing must be re-examined.

“Climate change has to be tackled by changing behaviour and providing alternatives, not hitting workers and families.

“From today, the Carbon Tax on solid fuels will increase by a massive 30%.

“An ESRI report assessing the financial impact a Carbon Tax on households has found that this tax increase will predominantly hit low-income families, but not exclusively so as everyone will be impacted by this huge increase.

“While this was the case in normal times, its effect is even greater now when so many have lost their jobs or had their incomes reduced due to the ongoing Covid-19 pandemic.

“Many low-income and rural households across the State will be hit hard by this tax. They cannot be expected to unfairly feel the brunt of it, especially at a time when so many people are already struggling financially.

“Deferring this tax increase is the right thing to do by these workers and families in order to ensure their income loss is not compounded even further by price increases when no alternatives exist.

“I am calling on Revenue to defer this increase, with necessary changes made to legislation by the Oireachtas at the earliest opportunity.

“The Government’s priorities in the months ahead must be protecting the incomes of households and then preparing a recovery plan that transforms our economy and invests in green technologies and alternatives which will enable a just transition.

“Increased carbon taxes or further outlays of any kind are the last thing families need right now as they are impacted by COVID-19. The timing of these increases is appalling and I have the asked Minister Donohoe to defer or scrap this tax.”