Deputy Ged Nash has called on the Government to make temporary changes to the VAT regime to cut electricity and fuel bills for struggle families in light of skyrocketing costs. He says the €100 electricity bill rebate is a gimmick that will do little for those most in need.
Speaking during Labour’s cost of living motion yesterday, the Louth & East Meath TD said:
“People are now paying 53% more on their energy bills than at the same point last year. They are struggling to keep the lights on and their home warm.
“The Government’s proposed €100 electricity bill rebate is a tokenistic and ill-targeted measure that will do nothing to help those most in need, including many renters who may not see the benefits passed on by their landlords.
“It is an expensive gimmick. Too many will get it who evidently do not need it. Too few who really need support will end up getting too little.
“Instead, government should focus its attention on how to return some of that €1billion unexpected VAT windfall to the pockets of those who need it the most.
“VAT represents the second largest source of tax revenue for the State. It is a tax on consumption. We all pay it, but the impact of VAT hurts some more than others. It is the least well off who bear the brunt of the VAT burden when prices go up.
“In order to help working people across the country through this crisis, to help them make their hard-earned euros stretch a little further, the government absolutely must look again at the need to reduce the VAT wedge on energy and fuel bills.
“This would be a temporary six-month measure to take us through this emergency period and to be reviewed in October’s budget.
“A six-month drop in VAT would cost around €200million. The same amount government will shell out on the electricity bill wheeze, but with a bigger and more effective impact for those who need help the most.”
