President of the INHFA (Irish Natura & Hill Farmers Association), Pheilim Molloy, has called on the Government to take immediate action on spiralling energy costs. Molloy stated that while “the recent increases are impacting every aspect of the economy, rural areas and our farming sector are particularly vulnerable.”
Over the last two weeks, we have, he stated “seen white diesel increase by 35c/litre and the State has benefited (through increased VAT) by 8c/litre.” This, he added, “comes on the back of substantial tax take through excise at 42.57c/litre, Better Energy at 8c/l and carbon tax at almost 19 c/l, with this set to increase further in May”
On petrol, Molloy, outlined how “there has also been dramatic increases close to that on white diesel and, while the make-up of the tax take is slightly different to white diesel, the State are even bigger benefactors with a higher excise tax paid.
For green diesel we have Molloy stated “seen the largest proportionate increase over the last two weeks, with the State once again benefiting by over 5c/l, through an increased vat take – all be it at the lower rate.
It is Molloy stated” vital that the State now acts and we are calling for
· the immediate suspension of the carbon tax
· a reduction in the vat rate for white diesel and petrol to 13.5%
· the full abolition of vat for green diesel and all home heating oils
This would bring current white diesel prices, which are now at €2.10/litre down to €1.72/litre with the price of petrol under €1.70/litre and critically green diesel prices down to approximately €1.10/litre.”
The INHFA President cautioned against any move solely confined to excise tax stating that “while any move on tax is welcome, moving only on excise will do nothing on the price of green diesel and will definitely not reduce white diesel by 40c/litre as we have proposed.”
In concluding Molloy stressed the need “for immediate action on this, because unfortunately this crisis is not going away.”