FG: Tax on energy giants would boost incomes

A WINDFALL tax on energy giants would boost family incomes by about €200 a year and help ease the credit crunch, Fine Gael last night insisted.

Party leader Enda Kenny said the levy would pay for a 1% cut in the 13.5% VAT rate and stimulate the economy.

Fine Gael said the Government had handed energy firms €300m a year until 2012 by letting them hike-up prices to cover the cost of carbon allowances which they are getting for free until 2012.