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, such as 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 has said 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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Sinn Féin Leader Mary Lou McDonald said there are grave and serious omissions in the Budget, including the failure to reverse cuts to PUP and that the wage subsidy scheme is "not fit for purpose".

Speaking on RTÉ's Morning Ireland, she said there is every chance and possibility we will need to have higher restrictions due to Covid-19 across the State and in those circumstances workers are right to expect support that will nurse them through these difficult times.

Ms McDonald said it is welcome that there are additional supports for business, but it is a "front loading of a tax allowance that will allow them claim tax relief on the cost of trading". 

She said grant aid is what is needed by small and medium businesses. 

Ms McDonald said the rates waiver needs to be extended to June and a tourism and hospitality voucher is a preferred approach to the 'Stay and Spend' initiative.