BUDGET 2021: Carbon tax has been increased to €7.50; Petrol and diesel price hike effective from midnight today

DUBLIN: The budget announced today decided to increase the carbon tax in Ireland to €7.50 a tonne. With this, the carbon tax will increase from €26 per tonne to €33.50.

Finance Minister Paschal Donohoe said in his budget speech that the tax increase on petrol, diesel and all other fuels would take effect from midnight today.

Petrol and diesel prices have been hiked by €2.5. The government has decided to increase the carbon tax by 7.50 euros per year until 2029.

In 2030, the tax on a tonne of carbon will be raised to €100, an increase of €6.50.

Minister Donohoe said the additional tax revenue would be used for climate activities.

Tax increases are another important step in the collective effort to decarbonize the economy. He said this would help reduce pollution levels and improve the quality of public health.