Dáil Éireann Debate, Tuesday - 4 October 2022
234. Deputy Ged Nash asked the Minister for Finance the estimated projected cost of extending the 9% VAT rate on electricity and gas for the remainder of 2023; the estimated cost for the extension in January and February 2023; the estimated additional average cost to a household and a business from the higher VAT rate applying for the remaining ten months in 2023; and if he will make a statement on the matter. [48530/22]
View answerI am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods or services in their periodic VAT returns. Therefore, it is not possible to provide an accurate costing for the potential measures outlined.
However, tentative estimates using third-party data of the total cost arising from extending the current arrangements, whereby electricity and gas supply are subject to the second reduced rate of VAT, are contained in the first three rows of the table below.
Revenue do not have the necessary data to estimate average household or business costs, but an estimate of the total VAT revenue raised from applying the higher rate (13.5 per cent) for the ten months from 1 March to 31 December 2023 is also provided in the final row.
|
- |
Electricity |
Gas |
|
Period |
€m |
€m |
|
Cost of extending 9% VAT rate: 1 October to 31 December 2022 |
23.6 |
6.7 |
|
Cost of extending 9% VAT rate: 1 January 2023 to 28 February 2023 |
18.5 |
5.4 |
|
Cost of extending 9% VAT rate: 1 March to 31 December 2023 |
88.2 |
17.8 |
|
Revenue raised from 13.5% VAT rate: 1 March to 31 December 2023 |
264.7 |
53.5 |
