Talk of petrol tax rift played down

The Departments of Finance and Environment last night played down suggestions of a rift between Fianna Fáil and the Greens on…

The Departments of Finance and Environment last night played down suggestions of a rift between Fianna Fáil and the Greens on the issue of the introduction of a petrol tax.

Minister for the Environment John Gormley said yesterday that an environmental tax on petrol would be introduced.

"I don't think at this stage we'll see it in the very first budget. We will see it in the lifetime of this Government. We have to introduce measures to dissuade people from consuming fossil fuels and in particular fossil fuels with high levels of carbon," he told Eamon Keane on Newstalk 106.

However, speaking on the same programme, Minister for Finance Brian Cowen said: "Matters of taxation are a matter for the Minister for Finance." Afterwards, a spokesman for Mr Cowen said that the department never comments on taxation issues ahead of a budget.

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A spokesman for Mr Gormley said there was a commitment in the Programme for Government to introduce a carbon levy.