Government to maintain 9% VAT on electricity until 2030, Taoiseach confirms
Thursday 2 July 2026
Taoiseach Micheál Martin has confirmed that the reduced 9% VAT rate on electricity charges will remain in place until 2030, amid political pressure over rising utility bills.
The Government will keep the VAT rate on electricity charges at 9% until 2030, Taoiseach Micheál Martin has confirmed.
Speaking during Leaders' Questions in the Dáil, the Taoiseach defended the state's response to ongoing cost-of-living pressures. He highlighted a series of active measures, including maintaining the reduced VAT rate on electricity for the next several years and deferring scheduled carbon tax increases until 14 October.
The comments came in response to opposition leader Mary Lou McDonald, who raised concerns over impending gas and electricity price hikes. According to Deputy McDonald, more than one million households face price increases ranging from 8% to 11% from suppliers such as Electric Ireland and Yuno Energy.
Deputy McDonald argued that Irish households pay an average of €500 more per year for electricity than their European Union neighbours, with over 500,000 household accounts currently in arrears.
In response, the Taoiseach detailed several financial interventions, including a support package valued between €755 million and €771 million, which included cutting 32 cent off the price of diesel and 27 cent off petrol. He added that the government's budgetary decisions had also boosted child support payments and the fuel allowance to protect vulnerable households from high energy costs.