Dáil Éireann Debate, Tuesday - 21 April 2026
445. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Finance if he will address the concerns regarding the recent fuel support package raised in correspondence (details supplied); and if he will make a statement on the matter. [28637/26]
Amharc ar fhreagraThe EU VAT Directive which Irish VAT law is obliged to comply, generally holds that all goods and service are liable for VAT at the standard rate which Member States must set at a minimum of 15%. Ireland currently charges a standard rate of 23%.
If a good or service is included in a list of goods and services under Annex III of the Directive, a reduced rate of VAT or exemption may be applied. Member States are permitted to apply up to two reduced rates at a minimum of 5%. Ireland currently has two reduced rates of VAT of 13.5% and 9%. Member States may also avail of a derogation under the terms of the Directive that allows for a reduced rate of VAT be applied to specific goods and services that have historically been charged below the standard rate and not included under Annex III. A key condition of this derogation is that a rate of at least 12% must be set and once applied cannot be lowered as it is considered a "parked rate".
As home heating oils such as kerosene is not included under Annex III, Ireland has availed of this derogation to charge the 13.5% rate on home heating products other than natural gas including firewood. There is no basis to apply a further reduction of VAT.
The Government is conscious of the difficulties faced by households and businesses due to the current high cost of energy prices. The two support packages in the year to date, costing come €750 million, will mitigate the additional costs of households and businesses in the current environment. Specifically as regards VAT measures, Budget 2026 has committed to keeping the 9% rate of VAT on household gas and electricity bills until 31 December 2030.
