Dáil debates

Wednesday, 9 March 2022

Ceisteanna ó Cheannairí - Leaders' Questions

 

12:22 pm

Photo of Verona MurphyVerona Murphy (Wexford, Independent) | Oireachtas source

Let me outline to the Taoiseach the composition of the price of a litre of fuel this morning. While it may vary around the country, the diesel pump price that I have been given this morning is €1.899 and it may be higher in certain parts of the country. The Government tax take is 96.58 cent, which is 50.86%. Taxes applied include excise duty, carbon tax and the National Oil Reserves Agency, NORA, levy. The actual pump price for petrol this morning is €1.922, which also may be higher in parts of the country. All Government duties include excise duty, carbon tax and the NORA levy. The actual price per litre without those duties, which add 55.23%, is €1.0653. VAT is actually applied to the aforementioned taxes at 23%. Is that not right? VAT is applied to excise at 23% and then onto the base price as well. The 23% is added to the carbon tax, the NORA levy and excise duty. The Government should not be doing that.

The reductions the Taoiseach is reporting today are not reductions at all, are they? It is the equivalent of the tax on tax because the tax that is on the tax on a litre of petrol is actually 20 cent. That is the tax that is on the excise. That is the 20 cent reduction we are supposed to be getting. The tax on the tax on a litre of diesel is 18 cent. Therefore, the Taoiseach has 3 cent to play around with, but he is trying to tell the people that he is doing them a favour. I just cannot believe it. To be fair, Dick Turpin wore a mask when he robbed the people but the Taoiseach can sit here barefaced and tell them that he has done something that he believes will save them. It is time to be honest with the people and it is time to be transparent. The Government is adding tax on tax at a time when the most vulnerable and marginalised income earners in this country are choosing between heating and eating. The Government is adding VAT to excise duty, VAT to carbon tax and VAT to the NORA levy at a rate of 23% on petrol and diesel.

I have listened to the Taoiseach on the national airwaves all week saying that we are in unprecedented times requiring extraordinary measures. It is time he put those words into action and took an extraordinary measure to temporarily remove all excise duties and all VAT. He should not hide behind the EU. We are clear on what it says in Annex 3 about VAT. The Taoiseach has already heard it today. This is not an ordinary time; it is an extraordinary time, something the Taoiseach has mentioned all week in reference to taking in refugees from Ukraine. He should apply it now to our tax rate and save the rural people who cannot afford to go to work.

Comments

No comments

Log in or join to post a public comment.