Cost of living: VAT cut on electricity and gas to last until October

Ministers approved a package of measures aimed at reducing the cost of living at a Cabinet meeting this morning
Cost of living: VAT cut on electricity and gas to last until October

A cut to the VAT rate charged on electricity and gas is set to last until the end of October.

Ministers approved a package of measures aimed at reducing the cost of living at a Cabinet meeting this morning.

The cut, well-flagged in advance, is expected to be worth around €50 on an annual gas bill and €70 for electricity.

Minister for Finance Paschal Donohoe said the estimated cost of the measure is €46 million.

“Today the Government has now agreed to reductions in the rate of VAT from 13.5 per cent to nine per cent on the supply of gas and electricity, from the 1st of May to the 31st of October,” he said.

He also confirmed the existing cut in excise duty on petrol and diesel will be extended until the budget.

Ministers additionally agreed to scrap the PSO levy of €50 a year, while those on the fuel allowance will be paid €100 in mid-May to assist with their bills.

Minister for the Environment and Climate Eamon Ryan said Cabinet discussions this morning also focused on energy security.

“On electricity, we’re also in a very tight situation. We had an amber alert yesterday, it’s one of the reasons I’m really pushing energy efficiency in everything because we do have to manage that so that we don’t have any difficulties.”

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