McGrath: Excise duty hike will go ahead in September
Minister for Finance Michael McGrath has confirmed that the planned hike in excise duty will go ahead in September as it is already “locked in”.
He said the decision had already been made by Government and legislated for by the Oireachtas.
However, he said it should take some time to reach consumers.
“In the same way as when excise was reduced, it took a while to feed through to the prices at the forecourts, the same should apply when excise is increased.”
Excise was cut in March 2022 as part of a range of measures to help with the rising cost of living.
This move is the latest phase in the restoration to the original rate.
The Minister said the cut had come at a cost of nearly €1 billion in reduced excise receipts.
There is one further phase of excise restoration due in October and Mr McGrath said the Government would keep that under review.
Mr McGrath also confirmed that the concrete blocks levy will be introduced next month after being delayed for several months.
The levy was introduced to help to pay for the defective blocks remediation scheme in Donegal and elsewhere.
He said that despite the risk that the cost will be passed on to consumers building homes, it was important to have a credible plan in place over the longer term as to how to fund a very substantial multi-annual, multi-billion scheme.
The Minister rejected suggestions that the Government had rowed back on a promise not to include precast concrete in the levy.
He said the Revenue had interpreted the legislation as exempting the “added value precast” elements but ready-mix concrete would be included.