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Gasoline and diesel prices rose at midnight, after the Dáil approved the carbon tax provision in the Budget last night.
The vote was 91 votes in favor and 53 against.
However, many other financial provisions, such as the reduction of the VAT rate in the hospitality sector to 9%, were approved without a vote.
After lengthy statements on the Budget yesterday afternoon, DTs got down to voting on various financial resolutions last night, including a € 7.50 increase in carbon tax.
Public Expenditure and Reform Minister Michael McGrath said the move was necessary as Ireland needed to “weather protect our economy and our society for future generations.”
However, Sinn Féin agriculture spokesperson Matt Carthy argued that the only difference rural communities will feel after the 2021 budget is the additional cost of the carbon tax.
The Government’s proposal was supported by the Labor Party, the Social Democrats and some DTs from the Independent Regional Group.
However, he was opposed by Sinn Féin, Solidarity-People before profit, Independent Rural Group, Independent Group and some Regional Independents.
The government says the money raised from the carbon tax will now be used to fund things like modernization of homes and buildings.
Read: More Budget 2021 Stories
The budget forces the motor industry to move towards electricity
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