There should be an additional tax on the electricity consumed by households, a sales tax on highly processed foods like pizza, a huge increase in property taxes and a road use tax, the tax commission has recommended.
The government-appointed group’s controversial report, just released, calls for a radical overhaul of tax and welfare systems over the next 10 to 15 years to finance climate change and a future of lower corporate taxes.
A controversial Commission proposal is that heavily processed foods should be taxed to discourage people from buying them.
This would mean family favorites like pizzas, chicken nuggets and fries would be subject to excise taxes.
There is currently no VAT on groceries.
No rate or level is specified that should apply to such a tax, which is left to politicians to decide.
The Commission recommends: “The government should reserve the right to levy taxes on the consumption of ultra-processed foods to support its reformulation policies.”
And the Commission’s calls for a surcharge on electricity bills are likely to be highly controversial.
This is because electricity bills have more than doubled to over €2,000 a year and there are fears they could get even higher.
It does not set a rate for a new tax on electricity consumption, but outlines the principle of levying a new tax.
The Commission on Taxation and Welfare takes note of a European Union plan to levy excise taxes on household electricity bills.
The Tax Advisory Board said it “recognises the need for the Treasury to generate additional revenue from the electricity tax in the medium to long term (after 2030) to replace fossil fuel revenue.”
Commissioners said any increases should be carefully timed and clearly signaled in advance, and should not act as a disincentive to the use of renewable electricity sources in carbon-intensive activities.
VAT is already charged on utility bills. It was temporarily lowered from 13.5 percent to 9 percent in response to the crippling cost-of-living crisis.
There is a public service obligation (PSO) on utility bills, although this is currently negative. There is no carbon tax on electricity bills.
Bonkers.ie’s Daragh Cassidy said that at a time when energy prices are at record highs, any suggestion that an additional tax should be levied on electricity seems ill-advised, to say the least.
He said Ireland’s electricity taxes were below the EU average, but Ireland still had the third most expensive electricity prices in all of Europe.
“If you look at the net electricity price before taxes and duties, prices here are by far the most expensive in all of Europe, about 50 percent above average,” he added.
The electricity tax proposal comes at a time when the state is encouraging greater use of electricity, e.g. B. by promoting and subsidizing the use of electric vehicles and heat pumps in households.
A road tax is also proposed.
“The Commission recommends the medium-term introduction of distance, location and time-based road user charges,” says the report.
Technology would be used to measure road usage.
The Commission recommends that congestion charges should also be levied in urban areas.
The municipal real estate tax revenue would have to “make up a significantly larger proportion of the total revenue by adjusting the real estate tax rates and, if necessary, by adjusting the valuation bands”.
According to the report, the ability of local authorities to lower the property tax rate should be eliminated.
A local property tax surcharge should be introduced for vacant properties.
And a location value tax should apply to all properties that are not subject to property tax.
https://www.independent.ie/business/personal-finance/tax/tax-on-pizzas-and-other-processed-foods-and-new-electricity-charge-recommended-by-tax-commission-41988764.html Tax on pizzas and other processed foods, and new electricity fees recommended by the Taxation Commission