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23 May 2022

VAT cut won't be added to home heating oil

VAT cut won't be added to home heating oil

Hard-pressed householders who use home heating oil to heat their homes will miss out on a proposed Vat rate cut, it has emerged.

The Government is expected to announce plans to cut Vat on electricity and gas today to ensure homeowners are not impacted by the carbon tax increase.

The government was unable, however, to secure a deal with the EU to allow them also reduce Vat on home heating oil.

According to Bonkers.ie, carbon tax on home heating oil accounts for €103 per fill of 900 litres. 

This proposed carbon tax increase will result in a 900 litre tank of kerosene will go up by €19.40 next month.

The Cabinet has signed off on the plan to reduce the VAT rate on gas and electricity from 13.5% to 9%.

The Department of Environment, Climate and Communications said that the temporary VAT reductions will begin on 1 May and will last until the end of October.

Cuts to excise duty on petrol and diesel, announced last month, will last until Budget 2023.

An additional €100 fuel allowance payment will be made. There will also be a programme of communications, which will inform businesses and consumers of ways to reduce energy costs.

The Public Service Obligation (PSO) Levy will be set to zero by October 2022.

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