Comhar: Budget should have introduced carbon levy

Comhar - the Sustainable Development Council - has welcomed today’s Budget announcement that Motor Tax and VRT will be altered to favour cars with relatively low levels of carbon dioxide emissions.

However, the Council has expressed disappointment that a full carbon levy was not introduced.

Professor Frank Convery, chairperson of Comhar, said: "Comhar welcomes the new system of Vehicle Registration and Motor Tax, which will make cars with relatively low levels of carbon dioxide emissions more attractive to consumers. This was one of the key recommendations we made to the Government earlier this year.

"Nevertheless, we are disappointed that a carbon levy was not introduced in today’s Budget. In June of this year, the Government committed itself to a reduction of 3% per year on average in greenhouse gas emissions between now and 2012. Comhar believes that in order to meet this target on time, Budget 2008 should have made provisions for a carbon levy.

"The Government has indicated that the issue of a carbon levy will be referred to a new Commission on Taxation for further study. However, we believe the levy should have been implemented without waiting for the proposed Commission to complete its assessment. It takes three to five years for most of the incentive effects of a carbon levy to be reflected on the ground and, therefore, the levy should have been introduced now, even at a low level, to ensure targets are met by 2012."

Comhar said it will be monitoring Mr John Gormley’s 'Carbon Budget' announcement closely tomorrow.

"We look forward to analysing Minister Cowen’s Budget in further detail and, in particular, we will be paying close attention to the details contained in Minister Gormley’s ‘Carbon Budget’, which will be revealed tomorrow," said Professor Convery.