{"id":25825,"date":"2022-04-12T12:49:00","date_gmt":"2022-04-12T16:49:00","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=25825"},"modified":"2022-04-13T12:51:20","modified_gmt":"2022-04-13T16:51:20","slug":"cuts-to-vat-on-energy-will-more-than-make-up-for-carbon-tax-says-taoiseach","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=25825","title":{"rendered":"Cuts To VAT On Energy Will ‘More Than Make Up For’ Carbon Tax Says Taoiseach"},"content":{"rendered":"\n
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Toaiseach Miche\u00e1l Martin (PA Wire\/PA Images)<\/em><\/figcaption><\/figure>\n\n\n\n

A plan to temporarily cut the VAT rate on energy will \u201cmore than make up for\u201d the planned carbon tax, Taoiseach Miche\u00e1l Martin has said.<\/p>\n\n\n\n

Mr Martin, T\u00e1naiste Leo Varadkar and Green Party leader Eamon Ryan discussed on Monday a number of proposals designed to curb the rising cost of living.<\/p>\n\n\n\n

This is expected to include a cut in the VAT rate on energy from 13.5 per cent to 9 per cent.<\/p>\n\n\n\n

The move must be approved during a meeting of the Cabinet on Wednesday.<\/p>\n\n\n\n

On Tuesday, Mr Martin said the move will more than offset the increase in the carbon tax.<\/p>\n\n\n\n

\u201cThe measures that Government will discuss tomorrow in relation to VAT reduction on gas and electricity, and indeed the fuel allowance, are designed to do just that and, in fact, they will more than make up, if not be far in excess of, the amounts that would have been raised up in terms of the carbon tax or the impacts of the carbon tax, so we\u2019re fulfilling that commitment,\u201d he said.<\/p>\n\n\n\n

Mr Martin described a \u201cunique set of circumstances\u201d, including a \u201conce-in-a-century pandemic creating its own inflationary cycle\u201d, and now a war in Ukraine, which he described as \u201cadding very significantly to the already increasing energy crisis\u201d.<\/p>\n\n\n\n

\u201cIn that context we want to engage with the social partners.<\/p>\n\n\n\n

\u201cWe believe we need to look at a more medium-term approach to how we should respond to these unique set of circumstances whilst protecting the essence of our economy, the essential pillars of our economy, which have been growing strong as we emerge from the pandemic,\u201d he said.<\/p>\n\n\n\n

He added: \u201cI\u2019ve been very consistent that we cannot entirely deal with or respond 100 per cent to all of the increases that have happened as a result of the pandemic and as a result of the war.\u201d<\/p>\n\n\n\n

Mr Martin said \u20ac2 billion has been allocated to a range of measures, including reducing transport costs, medicine costs and waiving school-leaving certificate fees.<\/p>\n\n\n\n

Asked why not make more than a 9 per cent reduction in VAT on energy, the Taoiseach said: \u201cThere are limits to what you can do because VAT is quite complex \u2013 in contrast to a lot of the comments that were made in the D\u00e1il, it\u2019s a far more complex arena now than simply saying to go to zero\u201d.<\/p>\n

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