Carbon Taxes predicted to increase in Budget 2019
With Budget 2019 looming, we are keeping an eye on the potential outcomes and carbon taxes seem to be a key factor in the budget predictions. They say more commuting..more fuel..more tax. But we may have found an alternative!
The real deal
Carbon taxes form part of revenue in many different countries around the globe. It is typically classed as a tax levied on the carbon content of fuels. It is a form of carbon pricing and the revenue obtained via the tax is not always used to compensate the carbon emissions on which the tax is levied. The objective of a carbon tax is to reduce the harmful and unfavourable levels of carbon dioxide emissions, thereby decelerating climate change and its negative effects on the environment and human health. Yet this comes at your expense.
The Climate Change Advisory Council has in recent weeks highlighted that we as a nation are entirely off track when it comes to meeting our targets. Instead of achieving the necessary 1m tonnes per annum reduction in carbon dioxide emissions in line with our own national policy, Ireland is increasing emissions at a rate of 2.1m tonnes per annum.
In fact, over recent years our total emissions have increased, by 3.6% in 2016, and an expected further rise in 2017 and 2018 predominantly as a result of the pickup in the economy, increased manufacturing and increased transport.
Thus with a potential increase in carbon tax, can I reduce my carbon emission foot print without the extra expense?
Where there’s a will, there’s a way
Of course, we are not suggesting you run away from all prospects of paying tax. But by simply reducing the amount of time you spend driving to and from work, you are reducing your carbon emissions and the amount of money you spend on fuel. Instead of using two tanks of petrol per week, you may only use one. Thus you are still availing of your car and paying relevant tax, but far less! SmartWorking often involves hybrid roles, whereby 2-3 days are spent in the office and 2-3 days are spent working from home. All of the companies seeking employees on our platform are enthusiastic about finding a SmartWorking solution that is right for you and the environment too!
- Property Tax: Mr Donohoe has previously hinted at plans to make changes to the Local Property Tax, which is still calculated on 2013 property values.
- Some small cuts to Income Tax and USC are also expected in Budget 2019 .
The income threshold at which the 40% income tax rate kicks in will possibly be increased.
The current threshold for single people is €34,550 . This is likely to be raised to as much as €37000 and €46000 for couples (single earner)
- Carbon tax may well be increased – over the next few years, with increases in fuel allowance to help poorer households.
- Increased excise duty on diesel is also a big possibility to bring it in line with petrol.
- Corporation Tax is not expected to be changed from 12,5%
The future of work is SmartWorking. Whether it be a remote, flexible or hybrid role, you are guaranteed less commuting hours and less time spent on the M50. The reduction in commuting times will in turn have a knock on effect on the amount of fuel you purchase and carbon tax you pay. Why wait any longer?
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