Finance Bill 2026 [Certified Money Bill]: Committee and Remaining Stages
Seanad Éireann — 2026-07-07
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Robert Troy (FF), Longford-Westmeath

There is a cost to some of the Senator’s recommendations. This arises on foot of the fact that she is proposing to stop the upward trajectory. If that change were to be introduced, there would be a cost associated with it. We can agree that is a matter of fact. I do understand that one of the Senator’s proposals is to carry out a review of what alternatives could be used. That is fair enough. There is no cost to a review. That review is already happening, however, because every year the Department of Finance, working with the Department of public expenditure, produces the tax strategy papers whereby every tax head is examined in terms of the money it is generating annually. That includes carbon tax, VAT, PAYE and corporation tax. The information obtained in that regard feeds into the summer economic statement, which outlines what the projected tax take for the country is going to be and the headroom relating to the upcoming budget. This is an annual process whereby every tax head, not just that relating to carbon tax - and I accept that the Senator’s recommendation is exclusively concerned with the carbon tax - is examined in terms of what has come in by the end of June and what it is projected will come in by the end of the year.
In the context of the forthcoming summer economic statement, the Minister, Deputy Chambers, and the Tánaiste, Deputy Harris, will outline the parameters for the forthcoming budget. Every political party will then have an opportunity to feed into the budgetary process. The budget will be published by the governing parties and the Opposition parties will come forward with their alternative budgets.
It would be wrong to say that this carbon tax revenue could be compensated for in other ways.
As of budget 2026, that is, last October, over €4.2 billion in carbon tax had been collected since 2020. All of that has been going back into climate measures like retrofitting, fuel allowance, SEAI grants, environmental schemes from the Department of agriculture and funding for the just transition. Those moneys are being spent in the way intended all while ensuring those on the lowest incomes are protected against unintended consequences. The Senator mentioned the working poor. In recognition of people who are struggling and avail of the working family payment, in last year's budget we extended the fuel allowance. That meant 40,000 households became eligible for the allowance that had not been eligible before. That was in recognition that earners on lower incomes needed additional help.
Today is 7 July and we are focused on getting ready for budget 2027. That will be presented only a few weeks after the Dáil resumes after the summer recess. It is critically important and the Tánaiste, the Taoiseach and I are on record as saying there must be something in this budget for working families. Whether that is increased allowances or a reduction in the income tax rate, which is obviously my preference, people who are working should feel the benefit in this budget. I have every expectation they will.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2026-07-07/debate/main
Retrieved: 2026-08-14T04:55:09+00:00
Sitting date: 2026-07-07