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EU weighs carbon tax on home heating and petrol to fill budget gaps

Commission officials suggest using some revenues raised by unpopular levy due in 2027 to meet bloc’s wider needs

Brussels is considering using an upcoming carbon tax on petrol and home heating to fund the EU budget, risking further controversy over a levy that is unpopular with France and Poland.

The emissions levy on fuel for domestic boilers, small industrial plants and cars is due to come into force in 2027, a year before the bloc’s new multiannual budget is due to start.

European Commission officials have floated the idea of taking a portion of the funds raised from the new carbon tax to help plug holes in the EU’s overall budget, said three people with knowledge of the talks.

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