The Government has approved a six-month extension to the reduced 9% VAT rate on electricity and gas, continuing its cost of living support measures for households across the country.
Finance Minister Paschal Donohoe will seek formal Cabinet approval for the extension on Tuesday before bringing forward a financial resolution to the Dáil on Wednesday. The relief measure, which was set to expire, will now continue until October 31.
According to The Irish Examiner, the extension comes amid ongoing concerns about energy costs and their impact on household budgets. The reduced VAT rate has been a key component of the Government’s approach to addressing cost of living pressures.
Meanwhile, in a separate development, Justice Minister Jim O’Callaghan is preparing to seek Cabinet approval to progress with Valerie’s Law, though details of this proposed legislation have not been fully outlined.
The Government’s decision to maintain the reduced energy VAT rate follows similar extensions to other cost of living measures in recent months, reflecting a continued focus on providing financial relief to consumers facing economic pressures.
Energy analysts suggest the extension will provide welcome certainty for households planning their budgets through the summer and early autumn months.