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Government 'won't put 0% VAT' on energy bills - Doherty

Electric Ireland has announced a major hike in the cost of gas and electricity
Jack Quann
Jack Quann

09.15 31 Mar 2022


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Government 'won't put 0% VAT'...

Government 'won't put 0% VAT' on energy bills - Doherty

Jack Quann
Jack Quann

09.15 31 Mar 2022


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The Government will not be moving to put 0% VAT on energy bills, even if the EU gives them the ability to do so.

That's according to Sinn Féin's spokesman on finance, Pearse Doherty.

He was speaking as another company announced a major hike in the cost of gas and electricity.

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On Wednesday, Electric Ireland said it will increase its electricity prices by over 23% and gas prices by almost 25% from May 1st.

Deputy Doherty told Newstalk Breakfast the Government needs to take all action it can.

"Even if the European Commission give us the flexibility to reduce VAT to zero, the Irish Government have signalled that they're not going to go that direction.

"Micheál Martin, in questioning by Mary Lou McDonald earlier on this week, said he does not believe that we should zero-rate energy bills.

"What they're talking about is a more minimalist approach.

"When we've got energy providers pushing up bills by €300, €400 and €500 then we need to see Government respond with the maximum amount of flexibility that's possible".

'Prices will rise further'

He says his party has been sounding the alarm since September.

"We've been signaling to the public that there is going to be price hikes around this time by all of the energy providers.

"What happens in terms of energy is the gas is purchased about eight months in advance, and we seen that price rocket up late last year.

"It's further gone up because of the war in Ukraine; which is likely going to mean that prices will further rise before the end of the year."

And he believes Ireland has been too slow to move on this.

"The difficulty is they need the support of the European Union to do it - and that's why we've been raising this since September.

"The first time that this was raised officially and formally with the European Commission was two weeks ago - and I think that's disgraceful.

"These families have seen price hikes, we've had about 35 price hikes since that time last year - and we have had no proper reaction from the Government".

Government 'won't put 0% VAT' on energy bills - Doherty

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