Dáil Éireann Debate, Wednesday - 13 May 2026
39. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Finance the estimated full year cost to the exchequer in 2027 of maintaining the reduced VAT rate of 9% on electricity; and if he will make a statement on the matter. [35436/26]
Amharc ar fhreagraThe Budget 2026 estimate for the full year cost of maintaining the 9% VAT rate for electricity was €185 million.
The latest full-year cost of maintaining the 9% VAT rate on electricity is estimated at €200 million. I am advised by Revenue that its Ready Reckoner, which is used to estimate the impact of potential changes in rates of taxation, will be updated in Q3 2026 which may change this estimate. It should also be noted that VAT on electricity is dependent on the price charged by the supplier. Consequently, fluctuations in electricity prices will result in corresponding variations in the VAT yield.
