Irish Minister for Climate, Environment and Energy Minister Darragh O’Brien has welcomed the government decision to extend the 9% VAT rate currently applied to gas and electricity by a further six months – to 31 October. The 9% VAT rate had been due to revert to 13.5% from 1 May.
This announcement was made by the Irish Department of the Environment, Climate and Communications of Ireland on 1 April 2025.
Minister O’Brien recently wrote to Minister Donohoe, expressing support for the continuation of the current reduced rate of VAT on electricity and gas for households. The Programme for Government acknowledges the increased energy cost pressures on households and businesses, and commits to bringing forward taxation measures to help contain energy costs, including with regard to VAT.
Officials from Minister O’Brien’s department are establishing a cross-government Energy Affordability Taskforce to identify, assess and implement measures that will enhance energy affordability for households and businesses.
This will entail both short term measures in preparation for Budget 2026, in addition to more medium and longer-term measures. The estimated savings for households from this extension (EUR 26.60 for electricity, EUR 20.28 for gas) are welcome and will provide much needed support for customers due to the continued high cost of energy. The Minister fully supports this Financial Resolution.
