Call for decrease in fuel excise to help with cost of living
A leading economist says decreasing excise duty on fuel would make a significant different to people struggling with the current cost of living.
Government officials are meeting with relevant stakeholders this morning to discuss Budget 2023.
The discussions come amid pressure from opposition to bring in emergency measures next month, to help reduce spiralling costs.
The Taoiseach has ruled out suggestions of a Christmas Bonus style welfare payment next month and an extension to the fuel allowance.
Head of the Department of Economics at the University of Limerick Stephen Kinsella says a mechanism that reduces tax on fuel should be considered by Government.
“I think there’s a middle way, and that’s flexible excise duty solutions.
“What I would suggest is that if the inflation rate goes up by 5% over a month, you drop excise duty by 5%.
“You make fuel that little bit cheaper, and you use the one tool the government actually has, and you do it in an automatic way so therefore it doesn’t require big interventions by government.”