(Adds energy minister on windfall tax gains)
DUBLIN, Feb 21 (Reuters) - Ireland on Tuesday announced
1.3 billion euros ($1.4 billion) in further cost-of-living
relief payments to households and extended a temporary lower VAT
rate for the hospitality sector through the summer season.
The package was more modest than the 4 billion euros
introduced last September as inflation took off, and the
government also outlined on Tuesday how it would unwind some
supports, including cuts to excise duty on petrol and diesel.
The latest round includes one-off payments for pensioners,
parents and social-welfare recipients. The 9% VAT rate for the
hospitality sector - reintroduced during the COVID-19 pandemic -
will now not return to 13.5% until the end of August.
Prime Minister Leo Varadkar said the measures would broadly
be funded within the parameters of the budget already announced
for 2023, leaving more "financial firepower" to act again later
this year if needed thanks to the 5 billion euro, or 2% of gross
national income, budget surplus recorded last year.
This year's budget included contingency funds that have not
yet been tapped, while a 1.25 billion euro business energy
support scheme has also so far been largely unspent, although
the government expanded the scheme on Tuesday in a bid to help
more businesses with higher energy bills.
Energy Minister Eamon Ryan told national broadcaster RTE
that windfall taxes on energy companies due to be introduced
this year would raise between 300 and 600 million euros,
depending on the price of gas.
($1 = 0.9383 euros)
(Reporting by Padraic Halpin and Conor Humphries
Editing by Mark Potter and Mark Heinrich)
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))
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