New Irish Government Vows to Increase Carbon Tax

Ireland’s new coalition government said Wednesday that it would increase carbon taxes, but vowed not to raise income taxes or social contributions.

The new government, a “grand alliance” between Fine Gael and Fianna Fail, made the pledge in a document outlining ten key policy promises including no cuts to welfare rates.

• The promises came despite the need for spending on coronavirus-related containment measures and an expected economic downturn.
• The International Monetary Fund said in a report published Tuesday that it expected the Irish economy to shrink by 6.8%, as the world faces the worst downturn since the Great Depression. ...