The Government is expected to slash the VAT rate on energy to help households with the cost of living crisis.
And they plan to give an extra lump sum of €99 to over 370,000 households that avail of the fuel allowance.
Government sources have confirmed to the Irish Mirror that the Government will look to cut the VAT rate on energy from 13.5% to 9%.
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It would see savings of €49 on an annual gas bill and €61 on an annual electricity bill.
A source confirmed this is the measure being brought forward by Government to offset the carbon tax increase from next month.
The VAT rate reduction will be a “temporary measure” and domestic legislation will be needed before it comes into effect “in a matter of weeks.”
The Coalition leaders will also bring a proposal to Cabinet to extend the fuel allowance.
It will be three weeks additional payments of the allowance in one lump sum of €99.
However, it’s understood the criteria required to avail of the fuel allowance won’t be widened.
Government sources have confirmed to the Irish Mirror that the Government will look to cut the VAT rate on energy from 13.5% to 9%.
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