The Irish government collected almost €1.4 billion in tax from electricity and fuel in 2022 – over €300 million more than the year before.
Despite the ongoing energy crisis, the State collected a total of €381 million in VAT from electricity alone – a 40% increase on the year previous.
While a reduced rate of 9% VAT currently applies to electricity and gas to help alleviate the cost of energy for households and businesses, this is set to return to the original 13.5% rate in March.
Discussing the figures on Midlands 103 this week, Aontú leader Peadar Tóibín TD called for VAT to be scrapped entirely in the context of the current cost of living crisis.
“Many people are going from overdraft to overdraft,” the Meath West TD said.
“That’s if they’re lucky enough to have an overdraft. Many people as well are being pushed to money lenders.
“And yet we have the government with their hands on a very simple lever which would have a direct effect in reducing the cost of living for people. And they’re refusing to do it.”
Tóibín added: “We are asking the government, in this time of crisis, to reduce the VAT rate [on energy] to zero.”
The figures come a week after it was reported that wholesale electricity prices shot up dramatically in December, with a month-on-month increase of over 93%.
Wholesale electricity prices up 93% as energy costs to rise further next month https://t.co/IiHPp7DalW
— Irish Examiner Business (@ExaminerBiz) January 20, 2023
Earlier this month the CSO reported that the number of people unable to adequately heat their homes more than doubled in the past year due to rising energy costs.
Number of people unable to properly heat homes has more than doubled, CSO finds https://t.co/n2AJSmyd5f
— The Irish Times (@IrishTimes) January 3, 2023
The soaring cost of energy has also partially contributed to a surge in the cost of other goods, as businesses raise their prices to cope with higher electricity bills.
Small businesses call for Government support amid rising energy bills https://t.co/godto7hpVi via @breakingnewsie
— ISME (@isme_ie) August 22, 2022
Items affected nationally include common household food products such as bread, sugar, eggs, milk and butter, which have all skyrocketed in price in the past year.
Housing, water, electricity, and fuel are some of the areas most impacted by the cost-of-living crisis, figures from the CSO reveal.https://t.co/d9D793NMII
— Irish Daily Mirror (@IrishMirror) January 18, 2023
The National Average Prices found that a loaf of bread has increased by 26 cent between December 2021 and December 2022.
Two litres of full fat milk have increased 57 cent, and a pound of butter has increased by 71 cent.
Gript previously reported how one family-run supermarket in Co. Clare received a painful €20,000 electricity bill amid the ongoing energy crisis, compared to their €6,500 bill the year prior.
A family-run business in Co. Clare has received a painful €20,000 electricity bill amid the ongoing energy crisis, compared to their €6,500 bill last year.#gripthttps://t.co/R3myeFuRs0
— gript (@griptmedia) November 8, 2022
Earlier this month Gript quizzed Finance Minister Michael McGrath on whether he would consider suspending the scheduled carbon tax increase to help families cope with energy costs. His response can be viewed below.
"Does hiking taxes help during a crisis?" Gript presses Finance Minister Michael McGrath on carbon tax hikes, and how he plans to help those in energy poverty.
FULL VIDEO: https://t.co/fLObC2ju6Q pic.twitter.com/K7FYbW511C
— gript (@griptmedia) January 5, 2023
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