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Another €200 Energy Credit Being Considered

A further electricity credit is being considered by the government to address the cost of living iss...
Ben Finnegan
Ben Finnegan

11:48 AM - 27 Jan 2023



Another €200 Energy Credit Bei...

News

Another €200 Energy Credit Being Considered

Ben Finnegan
Ben Finnegan

11:48 AM - 27 Jan 2023



A further electricity credit is being considered by the government to address the cost of living issues.

The €200 payment would be on top of the €600 in credits already confirmed.

A number of supports including reduced VAT and excise on fuel are due to stop at the end of February.

People Before Profit TD Paul Murphy says even an extra credit won't be the help many people need:

"Clearly people will welcome a €200 credit, but there is a structural problem in how the government is doing this, which is that there are no price controls being put on the electricity companies.

"So the electricity companies are free to pocket this €200, or a large portion of this €200 by simply keeping prices artificially high."

Figures earlier this week showed the State raised €381 million through VAT on electricity bills - which is up 40% on the figure for 2021.

In total, nearly €1.4 billion was generated in tax from electricity and fuel in 2022 - a rise of over €300 million.

A reduced rate of 9% currently applies to electricity and gas, but it's due to return to 13.5% in March.

Aontú leader Peadar Tóibín said afterward that he doesn't believe VAT should apply to energy with the current cost of living concerns.



Read more about

Cost Of Living Credit Electricty Energy Energy Credit Inflation VAT

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