Petrol and diesel prices increased at midnight, after the Dáil passed the carbon tax provision in the Budget last night.
The vote was 91 votes in favour, with 53 against.
However, many other financial provisions, like reducing the VAT rate on the hospitality sector to 9%, were adopted without a vote.
After lengthy statements on the Budget yesterday afternoon, TDs got down to voting on the various financial resolutions last night – including an increase of €7.50 in the carbon tax.
Minister for Public Expenditure and Reform Michael McGrath said the measure was required as Ireland needed to “climate proof our economy and society for future generations”.
However Sinn Féin’s agriculture spokesman Matt Carthy argued the only difference rural communities will feel after Budget 2021 is the additional cost of the carbon tax.
The Government’s proposal was supported by the Labour Party, Social Democrats and some TDs from the Regional Independent Group.
However it was opposed by Sinn Féin, Solidarity-People Before Profit, Rural Independent Group, Independent Group and some Regional Independents.
The Government says the money raised by the carbon tax will now be used to fund things like the retrofitting of homes and buildings.
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