Varadkar: ‘Carbon tax take could fund child benefit hike’


Taoiseach Leo Varadkar. Photo: Gerry Mooney
Taoiseach Leo Varadkar. Photo: Gerry Mooney

Taoiseach Leo Varadkar has suggested that carbon tax receipts could be used to deliver a hike in child benefit.

Other welfare payments and tax credits may also be increased as Mr Varadkar said he views the tax as a means to change behaviour, rather than to “take money out of your pocket”.

Increases in the levy are set to take place in the coming years in a bid to switch people away from fossil fuels.

Ireland is struggling to meet targets to cut CO2 emissions amid the threat of climate change.

Mr Varadkar said another option being considered is a “carbon cheque” for households to compensate them for the cost of the tax. People who use a lot wouldn’t benefit as much as those who use less.

Mr Varadkar said any changes to the tax would not apply until 2020 unless they were to take effect on Budget night. A decision on that would be made closer to the time.


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Irish Independent


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