Cuts to the VAT rate on electricity and gas will 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.
They include a 13.5% reduction in VAT on the supply of gas and a 9% reduction on the supply of electricity.
The reductions will remain in place until the end of October and will cost the Exchequer €46m.
They are expected to reduce the average annual gas bill by €50 and the average electricity bill by €70.
Ministers confirm the VAT rate on gas and electricity will go from 13.5% to 9% from May 1st until October 31st pic.twitter.com/vV7xM3KCCH
— Seán Defoe (@SeanDefoe) April 13, 2022
The Finance Minister Paschal Donohoe also confirmed that the existing excise cut on petrol and diesel will be extended until the budget in October.
Meanwhile the PSO levy of €50 per year is being waived and those of Fuel allowance will be paid €100 in mid-May to help with their bills.
The Environment Minister Eamon Ryan said today’s Cabinet discussion also focused on energy security.
“On electricity, we are also in a very tight situation – we had an amber alert just yesterday,” he said.
“That is one of the reasons I am really pushing energy efficiency on everything. We do have to manage that, so we don’t have any difficulties.”
The moves today will put hundreds of Euro a year back in people's pockets – but ministers know it will not get close offsetting the increased costs people are facing.
