Dáil Éireann Debate, Wednesday - 15 April 2026
199. Deputy Joe Cooney asked the Tánaiste and Minister for Finance if he will consider a temporary VAT reduction on fuels as a more appropriate measure to reduce the impact of high fuel prices on motorists across the country; and if he will make a statement on the matter. [27363/26]
Amharc ar fhreagraAs the Deputy may be aware, the EU VAT Directive, which Irish VAT law must comply, generally holds that all goods and services are liable for VAT at the standard rate for which Member states must set a minimum rate of 15%. Ireland currently charges a standard rate of VAT of 23%.
If a good or service is included in a list under Annex III of the Directive a reduced rate of VAT or exemption may be applied.
The supply of diesel and petrol are not included under Annex III and therefore there is no option to charge below the standard rate. The Government has recently announced new support measures to address the rise in fuel costs. This is a dynamic situation that continues to develop rapidly and the Government will continue to monitor the impact on households and business and respond in kind.
