Finance Minister Paschal Donohoe has said it is “unconscionable and wrong” that businesses could be forced to close while energy firms are seeing a surge in profits.
As consumers see continuing rises in their energy bills, the Government is facing pressure to impose windfall taxes on energy firms.
Mr Donohoe said the move is being considered by the Government ahead of Budget Day later this month.
Read More: Cork hotel charged over €18,000 for one month of electricity as prices continue to soar
Businesses and householders face massive increases in their energy bills which are expected to continue into next year.
On Thursday, Electric Ireland became the latest energy company to announce price hikes.
From October 1, it plans to increase residential electricity bills by 26.7% in Ireland and 29% in Northern Ireland .
Asked whether the Government would impose corporate tax hikes on energy companies, Mr Donohoe told RTE radio: “I indicated before the summer that this is a matter that the Government would have to consider.
“Of course, I can never comment on any taxation matter or any decision we make until Budget Day and the Government decides on a budget.
“It is unconscionable and wrong that businesses may be worried about going out of business when other businesses, for no reason and nothing that they have done, are also experiencing a surge in profitability. That’s wrong.
“We need to consider at national and European level how we respond to that.
“In addition to that, any decisions that Europe or Ireland makes has three policies that we have to consider.
“One, we don’t make things worse; two, we don’t stop or undermine the investment to make sure we’re insulated from this in the future; and three, we don’t put in place measures that are capable of driving prices up even further.
“That’s what we have to evaluate which I and the Government are currently doing.”
The Fine Gael minister said he recognises the “huge anxiety and concern” among householders, families and firms, particularly as they face the winter months.
He pledged that the Government will help with the rising costs as part of the Budget Day package on September 27.
Later on Friday, Mr Donohoe is to attend a meeting of G7 finance ministers as head of the European group.
The ministers will discuss a price cap on purchases of Russian oil.
Mr Donohoe also ruled out increasing Government spending based on record tax receipts.
He said the Government has not changed its spending plans despite increases in corporate tax.
“What this is about is ensuring that the Government and I, as Minister for Finance, don’t make decisions today that create really big problems for us tomorrow,” he added.
“That’s not being doctrinaire, that is about ensuring, just as we did during Covid, that what we do to help now we can afford, and that we can emerge from this great difficulty, which we will – we will get through this, we will overcome the challenges that are there.
“And we overcome them, we don’t do that having created new economic risks.”
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