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Daily Tax Report: International

New Irish Government Vows to Increase Carbon Tax

April 15, 2020, 4:28 PM

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.
  • Tax revenue in March fell by nearly 1billion euros ($1.1billion) from a year earlier, a decline of more than 20%, the government said.

To contact the reporter on this story: Hamza Ali in London at hali@bloombergtax.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; David Jolly at djolly@bloombergtax.com

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