Carbon tax comes into force

4 May 2010

Posted by John King

A new carbon tax affecting heating oil use has come into force across Ireland.

The tax, which covers other fuels as well as heating oil, has been attacked by a number of organisations as they believe it will push up home heating costs and could affect competitiveness.

However, environment minister John Gormley argued that the revenues from the tax are being used to help boost the economy.

A spokesperson for Mr Gormley told the Irish Times that taxes in other areas could be reduced and that more money is being spent on insulation as a result of the programme.

Nonetheless, Mark Fielding, chief executive of Isme, the group that represents small and medium-sized businesses, told the newspaper that the government should abandon the tax.

"The very idea of a carbon tax in the current environment is utter madness," he said.

According to RTE News, the tax, which was introduced at a rate of €15 per tonne on petrol and diesel in December, will now cover marked gas oil, fuel oil, kerosene, liquid petroleum gas and natural gas.

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