Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Nash for his good wishes. I look forward to working with him in a constructive spirit insofar as we possibly can. I am sure all of us across the floor will have certain clashes and disputes, but hopefully we can conduct our business in good spirits.

As the Deputy will be aware, the temporary reduction in the rate of VAT from 13.5% to 9% for gas and electricity was first introduced on 1 May 2022. In recognition of the ongoing difficulties experienced by households and businesses with the increasing cost of energy, it was extended on budget day for an additional four months, from 1 November to 28 February 2023. The estimated cost of the initial reduction was €46 million and the estimated cost of the extension was €45 million. As I have said on a number of occasions, in the coming weeks the Government will examine the full suite of taxation and other measures that are due to expire at the end of February. This will include consideration of the VAT rate on gas and electricity. While it is not possible to provide exact costings for an extension to the end of 2023, I am advised that the estimate for this measure is approximately €150 million.

See this speech in context