New revelations that carbon tax would be subject to VAT have come under strong criticism from Donegal TD Pearse Doherty.
The Sinn Féin deputy said he has received confirmation that any future carbon tax increases would also attract VAT.
This, Doherty said, means that the mooted carbon tax jumps will be even more regressive than anticipated. He said it amounted to “a tax upon a tax”.
Speaking today Deputy Doherty said: “Sinn Féin is opposed to the increase in carbon tax because it will disproportionately punish those on low and middle incomes while big business and corporate polluters will not be made to pay their fair share.
“The government has failed to provide any meaningful alternatives to citizens to enable behavioural change. It now seeks to pass the buck to households, once again, for their policy failures. The fact that VAT must be applied to carbon tax means the tax will itself be taxed.”
Deputy Doherty said that the “catastrophic reality of climate change” must be dealt with in a fair way.
He added: “The bills faced by ordinary people are already too big from sky-high rents to inflated insurance premiums.
“Government investment can help bring about change such as through free insulation and retrofits, making electric cars affordable and developing the charging infrastructure and through public transport expansion and fare reductions.
“These programmes are not on the agenda for the Taoiseach or Minister for Finance as they fixate on increasing carbon taxes even though the evidence does not show that it is an effective way of changing behaviours especially without alternatives being put in place.”