McGrath: Tax on fossil fuel providers should benefit Irish households

Photo © Tipp FM.

A Tipperary TD is urging the government to use a tax on fossil fuel providers to help the most vulnerable this winter.

The move by government will mean excess profits from fossil fuel producers will be taxed at 75%.

Companies extracting fossil fuels will be allowed to earn 20% above their usual profits before the charge kicks in.

Deputy Mattie McGrath of the Rural Independent Group says that should be passed on.

“The European Commission allowed on the 10th of October – which is 6 or 7 weeks ago now – for member states to do this but our government had to be dragged kicking and screaming to do it.

“It should have enormous savings for household because there’s a scope of between €340 million to €1.9 billion of a saving to be made here if its dealt with correctly.”