The government will cut VAT for the next six months as part of its new National Energy Security Framework designed to structure the country’s response to the energy security crisis exacerbated by the war in Ukraine. The Irish Government announced this Wednesday that the value added tax (VAT) on gas and electricity will drop from 13.5% to 9% to cushion the impact of rising energy prices. The plans were rubberstamped by the Government as part of its plans to tackle the rising cost of living. The principal feature of the package announced on Wednesday is a reduction of 13.5 per cent to 9 per cent in price of gas and electricity from supply between May 1st and October 31st. The cost of this measure is estimated at €46 million. Finance Minister Paschal Donohoe outlined that the temporary VAT rate cut was “being introduced in recognition of both with the challenge of the cost of living, but also in particular to offset the increase in carbon tax, which will take effect from 1 May.”
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