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Murphy calls for VAT exemption on energy charges as household bills continue to soar

Finance Minister, Conor Murphy is calling on Treasury to waive the VAT costs on energy bills to help families and businesses struggling with spiralling energy prices.

Minister Murphy has written to the Chief Secretary to the Treasury asking that the VAT costs of 5% for domestic users and 20% for business are waived for a period of time.

Highlighting the need for action to be taken, Minister Murphy commented:

“The cost of living crisis is severely impacting many of our citizens, causing further hardship for families and businesses during an already difficult time.

“Over the course of the pandemic, we have seen workers, businesses and families struggle immensely.

“Many will now continue to face significant financial challenges as we move through the winter period, with households and businesses coming under even more pressure given spiralling energy prices.

“I am calling on Treasury to act now and suspend VAT on energy bills temporarily to support the many families and businesses facing a very uncertain winter.”

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