Pearse Doherty (Donegal, Sinn Fein)
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86. To ask the Minister for Finance his views on increasing excise duty on the price of gas for residential use, home heating oil and solid fuel products in May 2023 in the context of a cost-of-living crisis; and if he will make a statement on the matter. [11322/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am acutely aware of the effect that high energy prices and the cost of living are having on families, businesses and the most vulnerable.

In recognition of these ongoing challenges, last month the government agreed a new €1.2 billion package of measures to put money back into people’s pockets, help with the bills, and ensure there is no cliff-edge removal of the temporary support measures already in place. This new package comes on top of the extensive assistance provided by Government in Budget 2023. Part of this new package includes the Government decision to extend the application of the reduced VAT rate of 9% for gas and electricity to 31 October 2023 to provide ongoing support to those facing high energy prices. The estimated cost of this measure is €115m. This will add to the already substantial support provided by Government to help with the cost of living.

The long term carbon tax policy sets out gradual annual increases in the carbon tax rate. The 2020 Programme for Government committed to increasing the amount that is charged per tonne of CO2 emissions from fuels to €100 by 2030. Government followed through on this commitment by introducing legislation in Finance Act 2020 to provide for a 10-year trajectory for carbon tax increases to reach €100 per tonne of CO2 by 2030. This measure is a key pillar underpinning the Government’s Climate Action Plan to halve emissions by 2030 and reach net zero no later than 2050.

It is important to note that a significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long term, provides support against fuel price impacts by reducing our reliance on fossil fuels.