Minister rules out cutting Vat to reduce energy bills

A new Vat rate, even on a temporary basis, would mean cutting an existing reduced one

Finance Minister Paschal Donohoe said Ireland already enjoys a derogation whereby energy products are 'parked ' at the 13.5% reduced rate. Picture: Sasko Lazarov / RollingNews.ie

Introducing a new reduced Vat rate to tackle the surge in energy prices could result in some products and services moving back up to the standard 23% rate Finance Minister Paschal Donohoe has warned.

European energy prices surged to record highs in the autumn as tight gas supplies collided with high demand in economies recovering from the Covid-19 pandemic.