A VAT reduction on fuel is “not possible after cooperation with the EU Commission,” Tánaiste Leo Varadkar told the Dáil.
This comes after weeks of contacts with the Irish Government and the EU Commission to see if it would be possible to reduce VAT on fuel from the current 13.5 per cent to help with the rising cost of living.
He told Sinn Féin’s Pearse Doherty in the Dáil during Leader’s Questions that his VAT cut proposals were “not possible”.
“Regarding your proposed solution that you have asked us to reduce VAT, we will of course take that into account, but this is not possible at the moment
“We had a working relationship with the European Commission, the Taoiseach and the Minister of Finance. We already have a discretionary VAT rate in Ireland, which has one of the lowest energy VAT rates in Europe.
“We have already achieved the lowest excise rates possible for both petrol and diesel and if we were to do what you are proposing at the moment it would not be possible, it is not legitimate, not legal.”
He said a reduction to 12 percent now would mean an increase to 23 percent later, and told Sinn Féin that their proposals were “not possible”.
He spoke after the Taoiseach last night told his parliamentary party that carbon hikes would continue in a few weeks, despite opposition from government TDs in Fianna Fáil and Fine Gael.
Mr Varadkar said measures to offset carbon tax hikes will be introduced before May.
The increase in the carbon tax, which comes into effect from May 1, means a €1.50 per month surcharge on the average gas bill and €20 more on the cost of filling a full fuel oil tank, Mr Varadkar said.
Independent TD Mattie McGratht told Tánaiste that rising electricity prices were “despicable” and “price gouging”.
He said he wrote to the Taoiseach about rising costs, but that he might as well have written to Santa Claus or the Easter Bunny, who is coming next week, “for all the good it’s done me.”
https://www.independent.ie/news/vat-reduction-on-fuel-not-possible-tanaiste-leo-varadkar-41530197.html VAT reduction on fuel “not possible” – Tánaiste Leo Varadkar