According to the Minister for Finance, Paschal Donohoe, “fuel prices at the pump will not go up as a result of taxes or levies”.
That is what he told the Dáil during the delivery of his department’s 2023 Budget earlier this afternoon (Tuesday, September 27th, 2022).
He confirmed that the rate per tonne of carbon dioxide emitted for petrol and diesel – will go up from €41 to €48.50 from October 12th, 2022 – as per the trajectory set out in the Finance Act 2020.
This, he explained, will mean that there will be an increase of just over 2c/L (VAT inclusive per litre) of petrol and diesel.
He told the house: “However, I also recognise the sharp cost of living challenges currently being faced by society.”
“So, the government is, therefore, proposing to offset this carbon tax increase with a reduction to zero of the National Oil Reserves Agency (NORA) levy.”
“The NORA levy – which is collected at a rate of 2c/L (VAT exclusive) – will help offset the carbon tax increase, which means that the price at the pump will not go up as a result of taxes or levies.”
The minister explained: “On the taxation side, I am extending the current excise reduction of 21c/L in respect of petrol, 16c/L in respect of diesel and 5.4c/L in respect of Marked Gas Oil (MGO), and the 9% VAT rate for electricity and gas until February 28th, 2023.”
“I will be introducing the necessary Financial Resolutions later this evening to give effect to these extensions,” he added.
During his address to Dáil Éireann this afternoon, Minister for Finance, Paschal Donohoe, said, “it is and must be a cost of living budget focusing on helping individuals, families and businesses to deal with rising prices”.
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