The Rural Independent TDs have taken a strong stance against the government’s plan to phase out the reduced excise rate on petrol and diesel, as contained in the Finance Bill 2023. The TDs are seeking to block the move, which they say will result in the government taking hundreds of millions from the pockets of Irish motorists. An amendment proposed by the Rural TDs would not only keep the lower rate of duty on fuels but also ensure that there are no further increases to the carbon tax.
According to the leader of the Rural Independent Group, Deputy Mattie Mc Garth, the government’s move could add up to €10 to the cost of a tank of fuel for an average motorist. In a recent parliamentary response obtained by his colleague Deputy Carol Nolan, it was confirmed that the proposed increases in excise duty would result in an additional amount of over €700 million for the government. This is even though the government collected over €3.75 billion in energy taxes in 2022, with the tax being lower.
The proposed increases represent yet another attack on every motorist and transport operator, particularly those living in rural areas who lack alternative modes of transportation. The cost of filling up has increased by 50% for diesel drivers and 33% for those with petrol vehicles since October 2020. The legislation before the Dail tomorrow would provide the government with the power to stagger increases in excise duty from June 1st, with petrol going up by 6 cents per litre and diesel by 5 cents on that date. On September 1st, petrol would go up by another 7 cents, and diesel will go up by 5 cents. The remaining 8 cents on petrol and 6 cents on diesel will increase on October 31st.
Diesel will go up a total of 18 cents, which is more than the 15-cent cut. Once VAT is added to the excise duty calculations, the increase will be higher than the original cut. Petrol will go up by 23 cents per litre from October. Irish people are currently paying some of the highest rates of tax on all energy products, including petrol and diesel, in the world. Despite this, the government wants to keep hiking tax rates in a misguided attempt to appear “green.”
The Rural Independent TDs are deeply concerned that the government’s green agenda is putting an unfair and crippling burden on ordinary people, pushing them to the point of poverty and destroying the rural economy. While it is important to promote sustainable practices and reduce carbon emissions, it must be done in a fair and equitable way that does not disproportionately affect those who are already struggling to make ends meet. The government’s relentless push for higher energy taxes is not only misguided but is also causing unnecessary hardship and financial strain on families and businesses across the country.
The next increases to the carbon tax will take effect from May 1st, adding more to the cost of purchasing home heating fuels such as coal, peat, natural gas, and home heating oil. This increase will add approximately €19 more to the fill of a 900-liter home heating oil tank, and around €4.70 in total to a 40kg bag of coal. The government plans to increase the carbon tax to €100 per tonne by 2030, up from €48.50 per tonne today. The Rural Independent TDs believe this tax is not only unfair but completely unwarranted until alternative reliable fuel sources are found.
The Rural TDs’ amendment to the Finance Bill 2023 seeks to cap all energy taxes, including the carbon tax, at the current lower levels. This would save Irish people hundreds of euros each year up to 2030 and give them a break from the government’s frenzied agenda to tax people who use energy into poverty. The proposed increases in fuel and energy taxes will act as a considerable taxation burden for all Irish motorists, including farmers, rural drivers, hauliers, transport operators, school bus providers, and anyone who has a private mode of transport.
The Rural TDs are calling on other TDs to join the fight and support their proposals and put an end to the government’s tax increases.
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