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.