Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

As the Deputy will be aware, the current VAT rate of 13.5% applies to energy products. It is a part rate and cannot be reduced below 12%. It should be noted that member states must apply their standard rate of VAT to this product. Our historical derogation covered electricity, gas, fuel and oil. This meant Ireland applied the rate of 13.5% to those products in comparison with other European countries which applied it at a rate of more than 20%. Had Ireland adopted the reduced rate on the basis of Article 102, it would have automatically removed gas and electricity from the historical derogation, meaning they would have reverted to the standard rate at the end of the temporary period. The VAT directive now provides for the necessary flexibility for gas and electricity. As the Deputy has highlighted, home heating oil is the heating source of choice for many households in Ireland, including many in his constituency and mine. The Government has introduced a large range of other measures to help people with the cost of living, which also includes those measures.

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