Lower VAT rate will help Clare households cope with energy bills
AN annual VAT rebate and a permanent rate reduction to 11per cent will ensure Clare householders will continue to benefit from lower electricity and gas bills, Fine Gael General Election candidate Leonora Carey has said.
According to the Fine Gael election manifesto, households will receive a domestic energy VAT rebate of approximately €40 per annum to mitigate against any additional costs arising from VAT system changes.
“Energy bills will fall under the new VAT rebate proposal from the Fine Gael manifesto. We will ensure householders continue to receive support with their electricity and gas bills at a time when many are struggling with high costs,” Ms Carey explained.
“The VAT rate for energy bills is due to go up to 13.5 per cent from next May. However, the good news, is that Fine Gael is proposing that any additional costs arising from this change will be offset by a new permanent domestic energy VAT rebate. This will more than make up for any changes arising from a simplification of the VAT system.
“Fine Gael wants to introduce an 11per cent domestic VAT energy rate instead of going to 13.5 per cent next May. The domestic energy VAT rebate we propose will offset the difference between the 9 and 11 per cent rate.
“The cost of electricity and gas is still a worry for many householders in Clare. Fine Gael in Government will ensure that nobody faces a cliff-edge with their bills.
“Fine Gael will also work with energy companies to fully utilise the capabilities of smart meters and promote use of cheaper tariffs to further reduce household energy bills”, Ms Carey added.