Calls for carbon tax to be slashed by almost half

DEMANDS for the carbon tax to be slashed by nearly half were voiced last night, as it emerged €120m from the levy was not being ring-fenced for energy-efficiency projects.

New figures show that the carbon charge is set to hand ministers a €250m windfall this year, yet opposition parties claim just €130m of that is going to the schemes earmarked for the money.

The Government is engaged in a “rip-off” operation which goes against the initial aim of the levy, according to Fine Gael energy spokesperson Simon Coveney. Despite Coalition claims the tax would be “revenue-neutral” and act as a way to change people’s habits, not raise extra revenue, it has now become a “cash cow”, say opponents.