In its response to the Department of Finance’s recent consultation on the options for the use of revenues raised from increases in carbon taxes, the Institute says that to achieve acceptance, taxpayers should see a direct link between the carbon tax collected, what the additional revenues are spent on and how they benefit.

Furthermore revenues generated from carbon taxes should be ring-fenced rather than go into a central exchequer fund and the poorest households should be protected from increased carbon taxes by a series of targeted reliefs through the tax and welfare system, starting with an increase in the fuel allowance. Read the response on here or on our website.