Liz McManus (Wicklow, Labour)
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Question 139: To ask the Minister for Finance the estimated additional revenue expected to accrue to the Exchequer in terms of excise duties and VAT arising from the recent 34% increase in gas prices, and the expected 20% increase in electricity prices; and if he will make a statement on the matter. [33083/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the additional revenue expected to accrue to the Exchequer arising from increases in gas and electricity prices relates to the VAT element of the increase. There is no excise duty charged on gas or electricity.

The information to be furnished on VAT returns does not require the yield from particular sectors of trade to be identified. It is, therefore, not possible to identify precisely what portion of the net VAT received relates to sales of electricity or gas to domestic households.

However, based on statistical data derived from non-Revenue sources, the estimated additional revenue expected to accrue to the Exchequer in 2007 in terms of VAT arising from the recent increase in gas prices is €28 million, and the corresponding expected increase in electricity is €34 million. These estimates include VAT from unregistered and exempt businesses as well as domestic consumers. The VAT content of purchases of gas and electricity is a deductible credit for registered businesses in the Irish VAT system.

It should also be noted that in response to these energy price increases, the Government has taken steps to improve the social welfare Household Benefits Package scheme by increasing the amount of electricity or gas entitlements covered under the scheme. This will benefit over 340,000 social welfare recipients and cost almost €50 million.