(VAT) is applied to consumer spending. Certain goods and services supplied in Ireland are subject to VAT.
Goods that are imported into Ireland, from outside the EU, are also subject to this tax. VAT is charged at the point where the goods enter the State.
Throughout the EU, certain goods and activities are subject to excise duty.
Excise duty is levied at the moment of manufacture of locally produced goods, rather than at sale.
Excise duty may apply to goods and activities such as:
excise licences (licences to sell or manufacture alcohol)
mineral oil tax
electricity and other energy products
Ireland has some of the highest rates of excise duty on alcohol products in the EU. This reflects a long-standing policy to support public health objectives.
Taxation is an important policy tool towards achieving a reduction in greenhouse gas emissions and the price of carbon.
Ireland has a regime of carbon taxes in place. Carbon taxes place a price on carbon dioxide (CO2) emissions, which provide a financial incentive to reduce consumption of fossil fuels. Carbon taxes also increase the financial incentive for investment in cleaner energy alternatives.
Ireland has a 2020 target to reduce greenhouse gas missions. This is not going to be achieved and it will be necessary to purchase compliance by way of carbon credits.
As part of an EU wide target of a 40% reduction in greenhouse gas emissions by 2030, Ireland has been given a target of a 30% reduction on 2005 levels.
If these targets are to be met, they will require a fundamental policy shift to reposition Ireland as a low carbon economy.