AA Calls for Fairness in Budget 2019

Calling it Carbon does not make a tax environmental – AA Calls for Fair Budget

Calling a tax ‘Carbon’ does not make it an environmental measure according to the AA as it warns government in advance of the Budget not to forget those who rely on their car to commute to work and those already struggling with home heating bills.

The warning comes as increases to both the carbon tax and excise duty on diesel are being discussed.

The AA believes that further increases to these taxes could place unnecessary stress on commuters across Ireland, particularly those living in rural areas where alternatives to the private car are not readily available. The organisation, which also provides Home Insurance, has also urged government to consider the effect that an increase in carbon taxes could have on households across the country.

“The government certainly has a challenge on its hands if we are to meet our climate change obligations.” Says Director of Consumer Affairs Conor Faughnan. “But you do not help that problem in the slightest just by pushing up the cost of living. The existing Carbon taxes on fossil fuels are simply a politically correct name applied to an old-fashioned cash grab.”

“Simply increasing the taxes associated with driving isn’t going to change anything but will only act to punish those who are forced to rely on the car to commute to work. This particularly affects rural Ireland or areas less frequently served by public transport.” Said Faughnan. “As a nation we absolutely need to reduce reliance on the private car, particularly in our cities. You don’t achieve that but taking money out of the pockets of individuals who have no choice. The workplace won’t get any closer to the home if more tax is added next Tuesday.”

“We would much rather hear about increased investment in public transport, additional incentives to encourage electric car use, provision of cycling facilities, tax breaks for employers to green their commuting needs. These are genuine environmental measures. Grabbing money is not.”

Meanwhile, AA Hospitality Services, the organisations hotels and guesthouse inspection service, has outlined its opposition to any potential increase in the 9% VAT rate for hotels and the hospitality sector. The organisation warned that tourism has played a pivotal role in Ireland’s recovery from the economic collapse and any potential increase in the VAT rate could in turn increase costs for tourists and potentially make Ireland a less enticing holiday destination.

“It does feel as if the AA’s customers are the ones in the firing line across all of our lines of business.” Says Faughnan. “We serve motorists, we provide insurance and emergency call-out to householders and we are the original Hotel grading organisation so we deal extensively with hoteliers as well. All of those groups are rumoured to be hit next week.”

The AA believes the 9% Vat rate for hospitality services should be retained.

“You don’t drop a measure just because you can prove it is working.” Says Faughnan. “It is in line with European norms, it affects our competitiveness and it is helping to create thousands of jobs.”