Money raised from higher carbon taxes will be returned to taxpayers under one of two schemes being examined by the government. Leo Varadkar said that while there would be no increase in the levy this year, he was seeking cross-party agreement by the end of February on a scheme that would pay a dividend to taxpayers. By returning extra revenue, the government aims to motivate consumers to cut their carbon footprint. The tax on fossil fuels such as oil, petrol, diesel, gas, coal and peat would be progressively increased, but the revenue would be paid back to the public at the end of each year. The taoiseach said that the government was considering either doing this via direct payment or via increases in tax credits or welfare. The proposal of a dividend has already found favour with Mary Lou McDonald, the Sinn Féin leader, who told The Times that her party accepted the need for a higher carbon tax.
Times 3rd Jan 2019 read more »