Tanaiste backs windfall tax on energy companies despite concerns

Tánaiste Leo Varadkar says we should impose a windfall tax on energy companies, but be careful not to cause unintended harm.

As Irish Examiner He said the government should consider taxing windfall profits, according to the report.

“But if there is an incidental tax, we have to be very careful to make sure it’s on the windfall component of the profit,” he said.

“What happens with the energy company’s normal profits comes to the state, and we use it to invest in housing, health care, education, everything else, and reinvest in renewable energy for the grid. Please remember

“So whenever we introduce a new tax or a windfall tax, we need to be aware of the unintended consequences. If it is a windfall tax, it makes sense.”

However, he noted that if such a tax were applied to ordinary profits, there would be a risk that companies would shy away from investing in grid, new generation and renewable energy.

“It’s going to be a short-term fix that actually causes long-term problems,” he said.

international cost

He said it is important to recognize that rising energy prices are driven by international costs.

Speaking at Roscommon, Varadkar agreed that introducing a new interim tax rate alone would be unfair, but said it was not intended.

“If it’s done alone, it’s fair and I agree with that analysis. Welfare package,” he said.

“So whatever we do with income tax, I don’t think it’s going to be exclusive to certain groups.

“I hear some opposition parties saying that we should only do things that target low-income groups. I disagree with that.

I think we need a universal approach of helping with the cost of living because everyone is feeling the pressure. Yes, we need more targeted measures for those most in need,” he said. Tanaiste backs windfall tax on energy companies despite concerns

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