Government may postpone restoration of fuel excise duty in November, Simon Harris says

The finance minister says it may not be 'prudent' to increase the tax when fuel prices are so high

Simon Harris said there were several 'big calls' the Government would need to make in the upcoming budget, including a decision on excise duty levels.

The Government may further postpone the restoration of fuel excise rates beyond November given continued high prices, the finance minister has said.

Simon Harris said there could be a further continuation of excise cuts on petrol and diesel, adding it may not be “prudent” to begin increasing the tax.

The cost of diesel and petrol was dropped by 32c and 27c respectively earlier this year.

Mr Harris said there were several “big calls” the Government would need to make in the upcoming budget, including a decision on excise duty levels.

“At the moment, the restoration of that [excise] is due to recommence in November. That may not be the prudent thing to do now if the current elevated prices continues. We need to look at that,” Mr Harris said.

It comes as both Mr Harris and Taoiseach Micheál Martin both gave their backing to an increase to the renter’s tax credit, after the housing minister James Browne sought a €300 increase in the relief.

Mr Browne wants the credit to rise to €1,300, with a spokesperson for the minister citing how it did not increase in Budget 2026.

Mr Martin said he was in favour of an increase but did raise concern about people who are entitled to the tax credit and not availing of it.

Mr Harris, meanwhile, declined to specify if he would increase the relief by €300 and only indicated it would rise.

“The programme for government is clear, that’s what unites everybody in Government, that the renters’ tax credit is an area that should be increased if possible, and therefore we will look favourably upon that,” Mr Harris said.

Mr Harris also firmly ruled out any change to stamp duty in the budget, despite a push from Fianna Fáil TD Seamus McGrath to have it removed for first-time buyers.

He said such a move would be a “bad measure”, adding this was the view of economists within the Department of Finance.

“I'm old enough to remember when people tinkered with stamp duty in the past, and I'm old enough to remember the devastation that people lived through in this country,” Mr Harris said.

“That's not the intention of everybody. Everybody is putting forward good ideas. Everybody is being constructive, but you don't narrow the tax base. What you do is increase supply.”

Mr Harris said no money would be passed on to first-time buyers and it would effectively be a “tax cut for developers”.

The Fine Gael leader also confirmed the Government would be looking at measures to reduce the cost of home-heating oil, citing particularly changes around carbon tax.

It comes as concerns have been raised by the Green Party the Government may cut funding to SEAI grants due to changes to carbon tax.

Party leader Roderic O’Gorman told Newstalk on Monday he was worried about grant funding if carbon tax increases do not go ahead as planned.

“If there’s a deferral to the carbon tax, it means less money in 2027. Fewer homes insulated, fewer solar panels installed, less money for increases in the fuel allowance,” Mr O’Gorman said.