The amount of carbon tax will be a significant part of the tax plan that will include changes beyond the promised promise that it will increase the tax threshold to 50,000 euros over the next five years, said Taoiseach Leo Varadkar.
Mr. Varadkar said that the accelerated income tax that he announced at Fine Gael Ardfheis Weekend will not be the only tax measures his party would advocate in the next general election.
He said Fine Gael would increase the threshold at which people favor a higher income tax of 40 percent to 50,000 euros for one person over the next five years.
As a result of the changes announced in the budget last month, the 40 percent rate will be charged from revenues above € 35,300 from next year.
The Finance Department estimates that Mr Varadkar's plan will cost 3 billion euros over five years and has already allowed the income tax package to cost about 600 million euros a year during that period.
Speaking Monday, Taoiseach said that does not mean that Fine Gael will be the only tax policy in the upcoming elections to lift the threshold at which people favor a higher tax rate.
He also said the party will increase carbon tax – which in the coming years will increase the price of gas, diesel, coal and other fuels. The carbon tax is currently calculated at 20 euros per tonne, and an increase of 5 euros would give more than 100 million euros.
Finance Minister Paschal Donohoe refused to increase his carbon tax on the budget last month, but said his intention was to set a long-term plan by 2030, which could see an increase in taxes to 100 euros per ton.
"If and when the election comes, we will issue a manifesto with details of our tax proposals," Varadkar said. "For example, we propose to continue to increase tax credits, and anyone who is paying income tax would benefit from it.
"As I announced during the weekend, we want equity for the self-employed, we already arrive there, but we are not there yet, and we want to be sure that we continue to recognize the role of the host through the tax credit of the host, and then we will have measures to raise revenue , for example, a carbon emission tax.
"We will create a detailed tax package before we ask the people to vote on it and this would obviously be the basis for negotiations on a program for the government, with the Independent or with other parties, as it is the case."
Trust and Supply Agreement
In the meantime, negotiations are continuing today between Fine Gael and Fianna Fail on a review of the trust and supply contracts. Discussions on re-examination are scheduled for three days this week, and will go on topics related to child care, traffic and rural jobs.
Fine Gael is pushing Fianna Fail to negotiate a possible extension of the contract, but Fianne Fail's leader Micheal Martin said yesterday that a review over the past 2½ years could continue until Christmas. This was rejected by Fine Gael sources.