Government considers second deferral of planned carbon tax increase

The government is considering a second deferral of the planned carbon tax increase in the upcoming budget, according to Transport and Climate Minister Darragh O'Brien.

Speaking at the Irish Road Haulage Association (IRHA) annual conference in Killarney, County Kerry, Minister O'Brien indicated that postponing the climate levy hike remains an option. While acknowledging that the tax provides significant funding for home and business retrofitting schemes, O'Brien highlighted the need to examine all options to keep costs down for the haulage sector and the wider economy.

The initial deferral of the planned carbon tax measures was introduced in April following fuel protests.

Finance Minister Jack Chambers also indicated that no decisions have been finalised, stating that all options remain open for the upcoming budget.

Although the levy is designated to fund energy-saving measures, emissions reductions, and building retrofits, the government is balancing these climate goals against rising commercial costs.