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TÁNAISTE LEO VARADKAR has said that the increase in carbon tax next month will be “more than offset” by the Government as part of a new cost-of-living package that is set to be agreed by Cabinet tomorrow.
Speaking to reporters this morning, Varadkar said that the Government had received flexibility from the EU on VAT rates, which would allow VAT to be reduced on both electricity and gas.
The Journal reported yesterday that VAT rates on gas and electricity could be temporarily reduced from 13.5% to 9%, alongside households receiving an additional three weeks payment of the fuel allowance.
“We’ve put together a package that will offset that [carbon tax], in fact, it will more than offset it,” said Varadkar.
“It’ll be both universal and targeted, everyone will benefit from the package but there’ll also be a targeted measure to make sure that those lowest income families get a little bit more.”
Varadkar added that Ireland had received “flexibility” on the EU’s VAT directive, meaning that it would be able to temporarily reduce VAT rates on both electricity and gas without having to increase them to a much higher rate in the future.
Previously, Taoiseach Micheál Martin told the Dáil that Ireland would not be able to temporarily reduce VAT on energy or it would be forced to increase the VAT levels in the future.
However, Varadkar said that this had changed for both electricity and gas, but not for petrol, diesel or home heating oil.
“Under changes that are being made to the VAT directive, we do have some flexibility around that on gas and electricity, but not petrol or diesel,” said Varadkar.
When asked about the Public Service Obligation (PSO) levy being temporarily scrapped, Varadkar said that there would be a decision made on that tomorrow.
The PSO levy is a charge applied to all energy bills and it is currently €4.30 a month, excluding VAT, leading to a yearly charge worth €58.57 per year inclusive of VAT.
Varadkar said that scrapping the PSO levy would not immediately see a reduced cost in bills, adding that it would be autumn before the measure would kick in.
One of the difficulties with the PSO levy is that any benefits around that wouldn’t kick in until the autumn and we felt that we needed to do something now and have something that would kick in in the first week of May.
He said that the Government could not “fully compensate” people for the cost of living, but added that there was more they could do.
Varadkar was speaking at the launch of a new Irish trade strategy, which would see multiple Government ministers take part in a yearly mission to boost trade.
He said that the plan was developed to help “consolidate” Irish trade and to remain ahead of competing countries.
Holohan report
The Tánaiste confirmed that he had received a copy of the report on the secondment of Chief Medical Officer Dr Tony Holohan to a role in Trinity College Dublin, but that he had not discussed it with the coalition leaders or Health Minister Stephen Donnelly.
Varadkar said that Holohan leaving the public service was a loss and added that the controversy could have been handled better.
“I received the report last night and had a chance to read it, it’s quite short.
I haven’t had a chance yet to discuss it with the Taoiseach, Minister [Eamon] Ryan and Minister [Stephen] Donnelly.
He said that due to the large amounts of money involved, the proposed secondment should have either been signed off by a Minister or by the Cabinet.
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Make it up as you along time folks. Can’t wait for the Greens to be left with no seats after next election
@Maurice O Neill: and they will deserve it after some of the statements Ryan has come out with in the last few weeks.
So reduce VAT to offset Carbon tax introduced to make fossil fuels more expensive!?!, the mind boggles!!!
@Spartacus Ireland: it looks like the Greens dug their heels in, probably threatened to pull out of government if their precious carbon tax was touched, which would prompt an election, if another government cannot be formed. The other 2 parties need to call their bluff and leave whatever happens, happen. The only sure thing would be if an election is called, the Greens would be wiped out, and I would not fancy PBP’s chances either, with their actions last week during the Zelensky address or the Daly/Wallace actions of late.
God , when will we be done with this same old muppets running the show.
@John Johnes: 2025 :/
@John Johnes: new muppets wont be much better unfortunately. These get their orders from globalists and Eu
@LaoisWeather: that is simply assumptions.
100 years of same old muppets tossing a ball to each other over and over and over should come to an end to let another side to try and direct the country.
It is simply stupid to make any claims about a party that never was the ruling party before.
Only when there is a competition and shifting ruling politicians and parties – the country blossom.
A shifting governments start doing their hardest to please the electorate to win over the votes from the opposition to remain in the gov which does not happen here unfortunately with FFG muppets.
@John Johnes: If you are fully convinced that pretty much all parties in Ireland are not pro-EU and pro-Globalisation then you are pretty naïve.
These globalists and EU don’t care a jot about the citizens and their policies actively work against us.
@LaoisWeather: again , you are not getting the whole image what i am trying to explain to you..
Lets not say that one would care more about the people than the other – the point is, that when there is the REAL competition and shifting in the government , then the people of that country benefit from it because both ruling and opposition party are fighting for the electorate votes by creating better conditions for the people.
Does that ring a bell?
@LaoisWeather: Your theories will be tested at the next election
@JusticeForJoe: Don’t have to wait at all Joe. You can see it all in motion over the last 30 years. Bit by bit. The boiling frog theory in action.
@Chevin Cass: and my fear is even then, they’ll do anything to hold power, and could pull in greens and Labours votes and have a four party coalition. As ridiculous as it sounds, there’s nothing they won’t try to hold power. They don’t care what we think on the matter, they believe they know what’s best.
Utility providers will just increase the prices again.
Bananas
@Bitcoin Buddy: guess who is getting all the profit.
Same as Irish insurance cartel.
Leaky leo was so proud and vocal on reducing claim amounts by 50% saying that insurance premiums will now be 50% cheaper.
Premiums are still the same and insurance companies claims are now reduced by 50%
Guess who is making 50% more profit now??
@John Johnes: Insurance costs for my household have decreased significantly in the last few (3-4) years. Family car has reduced from 800 to 450. My commercial policy reduced from about 750 to 500
@HectorPickaxe: idc about the house insurance Hector , but i am pretty sure that i pay the same amount – 700 euro insurance as i used to after all the shopping for a better quote.
@HectorPickaxe: are you driving the same car now as you did 4 years ago? insurance on new cars is always much cheaper than older cars. the price increases every year even after year one for absolutely no reason on a new car. no claims for countless years, low mileage every year and still price goes up the older a car gets
@John Johnes: Not sure if that was unclear but I was talking about the cars in my household, not my house insurance. I’m just telling you that my insurance has dropped significantly, but I can’t comment for the entire population
@Soeren Kuehling: I have the same commercial vehicle for the last 12 years. My annual mileage is very low. My insurance went very high 4-5 years ago but has dropped every year since. For the family car we normally change up every 2-3 years and have the same model and spec. car from 2 to 5 years old. Same for that, it was lower, then higher, and now lower again.
There is no pattern other than that and I understand that insurance varies depending on a lot of factors, but as I said in general it was at it’s highest a few years ago and has dropped every year since. There was no other change with points, licenses, etc. I am obviously older but over 40 it shouldn’t matter
@HectorPickaxe: the only difference that i ever saw Hector was that my insurance companies offered me a higher premiums after contract ended. Driving a 2008 car does not help for sure , so the insurance is averaging around 700 full comprehensive for many years.
There’s inflation and then there is profiteering. A lot of the increases in the last 6 weeks are pure profiteering, and amount to more than the previous 2 years of the pandemic with the best example being how the fuel stations raised prices so they could cut them when the excise duty cuts were announced. As to the carbon tax, it should be repealed. In rural areas there is no alternative to the family car as there is no suitable public transport or EV charging network. A bit like the public transport fares drop yesterday, which helps even less people than the carbon tax. No good in rural areas, and the largest population centre in rhe country does not benefit from it. The Greens obviously dug their heels in at whatever meeting was held last night.
@Joe_X: You would have to wonder why we need the regulators for. Clearly, they have no interest in regulating or protecting the people from the profiteering.
@David Corrigan: These regulators are mere cronies, collecting their substantial paycheck for “filling a role” and “ticking a box”. They are paid handsomely enough to detach them/insulate them from the consequences of their actions.
Here’s an idea, how about scrapping the carbon scam altogether? Then you wouldn’t have to pretend to ‘give back’ to people. Its an utter scam and you are fooling no one.
@Dermot Sexton: yea, just hand out grants and more grants and more tax reduction and vat reduction amd duty reduction and everything will be OK… Sure we don’t need those pesky public services like police, fire service, or ambulances. We don’t need road maintenance or hospitals or any of those useless services. And sure SF will sort it a out next time anyhow.
Tilting at windmills.
Sick of this government
@Fr.Todd Unctious: And it doesn’t matter who we vote in, the permanent government always wins (high level Civil Servants).
We are carbon based life forms. So a carbon tax is a tax on life itself. Just let that sink in. We are taxed at source and then again trice over. All this tax and what do we get in return. More taxes.
They are running the country into the ground before SF take over so they can sit in opposition and blame all on them. With the way public memory works FFG will be back in no time.
@Carol Oates: Why do people think SF have the answers? We know their manifesto, and quiet frankly, if they were in charge, we would be worse off, if they even attempt their election promises. Sorry, but no thanks.
@Joe_X: I don’t think anyone thinks SF have all the answers. I know I don’t. But they could have different options. Unless you have a crystal ball that works, how can you know we wouldn’t be better off? At this point of 100 years back and forth with variations of the same lads, we have to try something different or just accept being screwed over at every turn. If SF works well, all good. If they fail, they fail, but at the moment, the alternative is more of the same for sure. And the same isn’t working.
@Carol Oates: Isn’t that what the various parties manifestos and election promises are for? So we can judge, each for ourselves, what each party in power would mean. With what SF were saying in the run up to the last election, I doubt they could follow through with, without severely taxing the middle income earners. So as I said, sorry, but no thanks.
At least he won’t be Taoiseach with a Garda investigation hanging over him
@Dave Barrett: if you believe that I’ve a bridge to sell you.
I have A Bale of Briquettes And Two Bags of Turf Should l Hide them and Mabe Someone Might Find Them 2122 When they Could be worth A Fortune I better put A note With Them As people then Might not Know what to do with Them If Ryan Gets His Way
The best thing for this country would be if the people making decisions were living on similar salaries and expenses to the average wage earners. Even then their grasp of the sufferings of the poor would be insufficient.
Labour party cutting ribbons to food banks while in government,
Green party making people choose between heating their homes or eating for this winter coming.
Both despicable parties that never ever should get into government again
Give in one hand and take it back with the other. Usual from these charlatans in power.
There’s a new Government? When did this happen? I must keep up. Probably the same as the old Government though so I don’t suppose keeping up really matters all that much anyway…
We don’t we do .. f ools haven’t a clue what’s what until the opposition told them ..
There’s no flexibility around petrol, diesel or home heating oil because you’re raking in too damn much from them to reduce the costs
Doesn’t help those who get up early for minimum wage.
Won’t affect them and there 15pc wage increase in July +EXPENSES, Saying they can’t reduce Vat, and now reducing it Temporarily, what about Food, people are cutting back to pay for heating (starve), Time for them to be forced out of The Gravy Train, and 1 Pension not 3.
have your say