The report on taxation is due out this month and while it looks like there is a strong possibility that the introduction of a property tax and water charges maybe postponed for a later date, a carbon tax is still on the table. So why introduce a carbon tax and how much will we have to pay?
There are a few reasons as to why … a carbon tax should be introduced; one reasons highlighted in the media is that the tax would generate a much needed income to help avoid an inevitable fine due to legally binding EU agreements! – (Great another debt that we really don’t need right now!).
Despite a fine, one of the main reasons to introduce a carbon emission tax is so that we meet our target of a lowering our carbon dioxide emission output as set by the EU. By introducing a Carbon Tax it would help us adopt a “greener” frame of mind and therefore in turn may help reduce our use and reliance on fossil fuels which will someday run out!
So how much will this cost us?
In a recent report released by the ESRI, they proposed that an initial introduction of a €10 tax per/ tonne of carbon, which they say would probably rise to approx €20 in future years. On top of that a carbon levy would also be introduced. This would involve increases in the prices of petrol, coal, peat and briquettes.
France has already said that they will introduce a Carbon Tax next year, 2010. They have initial tax rates defined and also a list of who and what would be affected by the tax. Points include:
- €32 euros for every tonne of carbon dioxide (CO2) emitted in 2010 and raise the levy progressively to €100 euro per tonne by 2030, an increase of 6% a year, adjusted for inflation.
- The tax would add 7-8 cents to the price per litre of petrol from the beginning, and raise heating and cooking gas prices by about 15%.
- The cost per household would vary. A family of two parents with children living in a new house in a rural area might pay an extra €303 a year. A single parent family in a modest apartment in a big city like Paris could pay €78.
If France is leading the way with a very clear carbon tax proposal for its citizens, will we be next to follow suit?