Mayo appeal to scrap carbon tax now to ease fuel crisis

A Mayo TD has called on the government to get rid of carbon tax on fuel and follow the example of Canada and other countries.

Deputy Paul Lawless said: “I am deeply concerned about the lack of petrol and diesel available at pumps around the county.

"I have engaged with the protesters at the port in Galway and was shocked to learn that no government minister had met with them or visited the site of the protests.

"The protest was very peaceful and respectful and the farmers and hauliers I met there, and their families are at their wits end.

"The government’s nasty words about the protesters coupled with their refusal to engage and their threat of bringing in the army has only inflamed tensions more.

"The solutions are there – we know that Spain has reduced their VAT on fuel to 10%. Yet in Ireland the VAT rate remains 23%.

"More than half of what people pay at the pumps is going to the government in taxes, despite their recent measures”.

Deputy Lawless continued: “According to figures previously released to Aontú Carbon Tax is now the second largest component of fuel tax, second only to VAT. Canada have reduced their carbon tax rate to zero. Ireland should follow suit.

"I’ve been crunching the numbers a little bit myself and its obvious to me that the government are cashing in on this crisis.

"Back when Russia invaded Ukraine the government too steps to reduce the tax on fuel – but overall, in that year the fuel tax yields in terms of money value were roughly the same as the previous year.

"The rate of inflation was such that the public purse did not take a hit despite the tax reduction. Last month because of the rise in fuel costs the government took in an extra €6 million in excise duties, when compared with the same month last year.

“Following the Russian invasion of Ukraine in March 2022 the government reduced excise duty by 20c on petrol and 15c on diesel.

"And they began restoring the excise duty in June 2023. Yet between 2022 and 2023 the amount of tax on fuel taken in by the government actually increased by about €60 million despite their excise reduction.

"The amount taken in Carbon tax on petrol and diesel increased by more than 20 to 25% in each of the years while these measures were in place.

"So, despite the reductions in excise duty the government actually came out of the situation last time richer than they were going into it.

"It is mind boggling to think that the government are still intent on increasing carbon taxes further in the weeks to come.

"The anger against the government is palpable in every street and town in rural Ireland. They need to start listening and taking action to reduce the economic burden, otherwise inflation will skyrocket across the entire economy.

"If other countries can take measures, then so can we!”, concluded Lawless.