Ceisteanna ó Cheannairí - Leaders' Questions
Dail Éireann — 2021-11-23
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Micheál Martin (FF), Cork South-Central

First, in terms of rural Ireland, a major and unprecedented initiative was taken to increase the allocation of resources for a rural transport scheme. The only city that has Luas and DART services is Dublin. The other cities do not have those services although we are trying to develop a more expanded bus network. That is acknowledged. We are one of only a few EU countries that by way of a special derogation from the general EU rules already apply a reduced rate of VAT of 13.5% to energy prices. Under EU rules, this rate cannot be reduced below 12% so if we were to attempt to reduce the rate to 9% for a few months, for example, I am informed that the VAT rate would afterwards revert to the standard rate of 23% and our special derogation would be lost. The VAT reduction option is not as simple as it has been presented in the House and could have serious repercussions down the line. What is important is that we look at ways to cushion families against the impact of increases in energy prices and we are keeping that under review.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2021-11-23/debate/main
Retrieved: 2026-08-14T04:49:51+00:00
Sitting date: 2021-11-23