Tax Credits
Seanad Éireann — 2026-06-25
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Kieran O'Donnell (FG), Limerick City

I thank Senator Lynch for raising this important matter. As I stated earlier, I am taking this debate on behalf of An Tánaiste and Minister for Finance, Deputy Harris. I am fully aware of the importance of local pubs to Irish culture and the Irish economy, particularly the local and rural economy. Like all businesses, the on-trade is facing challenges from increased costs. The Government is taking steps to alleviate these challenges, particularly through work being co-ordinated through the Department of Enterprise, Tourism and Employment and the cost of business advisory forum on the action plan for competitiveness and productivity.
Action has already been taken to support the hospitality sector; for example, as I mentioned earlier, through the VAT reduction to 9%, which will take effect from July. This will be of benefit to pubs selling food and hot drinks. In addition, the Government announced two energy support packages earlier this year. These are temporary excise reductions for auto diesel and marked-gas diesel in an enhancement to the diesel rebate scheme.
The Government also announced the deferral of the planned 1 May carbon tax rate increase until 14 October 2026. While no Government can fully insulate against energy price shocks, these measures provide support to households and the broader economy by alleviating some of the financial pressures arising as a result of fuel price increases. I will bring the points the Senator has raised to the attention of the Department of Finance officials and the Tánaiste and Minister for Finance. The Government will continue to focus on supporting businesses across Ireland, including pubs, as we develop options for budget 2027.

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Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted.

Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2026-06-25/debate/main
Retrieved: 2026-08-14T04:55:07+00:00
Sitting date: 2026-06-25