Households pay more than half of €5.5bn in environmental taxes collected last year

Excise duty on hydrocarbon oils such as petrol, road diesel, and marked gas oil was the main source of revenue. File photo

The Government collected €5.5bn in environmental taxes, with households footing over half the bill, new figures have shown.

The Central Statistics Office said environment taxes rose by 11% last year, the highest amount recorded since it first began compiling these statistics a decade ago.

The bulk of the taxes came in the form of energy taxes, which saw €3.4bn collected last year. This was a 15% increase on 2023.

CSO statistician Clare O’Hara said: “Excise duty on hydrocarbon oils such as petrol, road diesel, and marked gas oil was the main source of revenue, accounting for €2 billion or 57% of energy tax receipts.

“Carbon tax made the next largest contribution at 31%. Carbon tax receipts rose by 16% to €1.1bn in 2024.” 

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Each year, the rate of carbon tax rises by €7.50 per tonne, aiming to reach €100 per tonne by 2030. Applying to the likes of oil, natural gas and coal, the tax is aimed at reducing emissions.

Charities have urged the Government to ringfence the money raised by these tax increases on specific targeted measures.

This week, Social Justice Ireland repeated calls for next week’s Budget to include measures to use the carbon tax rise to support those most affected by it, including low-income households and rural dwellers, joining groups such as Society of St Vincent de Paul and Friends of the Earth in similar calls. 

Elsewhere in the CSO data, it said that transport taxes grew by 4% to €2bn in 2024. The two main taxes under this heading were vehicle registration tax (49%) and motor tax (48%).

Pollution and resource taxes increased considerably, up from €9m in 2023 to €30m in 2024. This was the highest figure since 2017, and includes taxes like the plastic bag levy.