Govt urged to cut VAT and excise on fuel and home heating oil

Ireland should seek permission from the European Council to get a VAT reduction on energy bills, according to Sinn Fein leader Mary Lou McDonald. 

"We know that there are more energy hikes coming down the tracks, she told the Dáil. 

However, the real impact of the Russian invasion of Ukraine will not be felt until towards the end of the year, Deputy McDonald said. 

"We need to get on top of this crisis. People expect the Government to respond with speed and urgency that matches the unprecedented difficulties that they now face to intervene with measures that work, that will get energy bills down and keep money in people's pockets," she said. 

"I understand that Government can't do everything, but you can do more," she said. 

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She urged Tanaiste Leo Varadkar to "engage with the European Commission to remove VAT on energy bills for at least a period of 3 months". 

She also asked that excise duty on home heating oil be removed. 

"These are two specific measures that will bring the cost of energy down for struggling households and indeed for business," she said. 

The Tanaiste acknowledged that energy prices are increasing, "which is really squeezing people and making bills hard to pay". He said it was affecting business as well. 

“The Government will do whatever we can to help people to ease the burden, but we can’t do everything.

“So far we have committed 1bn euros to help people with the cost of fuel and energy," he said. 

The Tanaiste added: “Of course the Government will give consideration to further actions that we can take to help people and help businesses with the bills, but we do need to be honest with people.

"We have already set aside 1bn euros to reduce the cost of energy.

"We have to see what else we can do beyond that which is affordable," he said.