Tánaiste and Minister for Finance Simon Harris has described today’s Dáil vote to defer the increases in motor fuel excise duty as a “significant intervention”.
Mr Harris added that the Government is “carefully” monitoring the global energy crisis and that any other suggestion is “dishonest politics”.
TDs backed Government plans to defer the increases, which had been planned for September and October, by 104 votes to 49.
The cuts to excise duty on petrol and diesel are now set to be phased out over a period from November to the end of February.
The decision was made during an emergency 90-minute sitting of the Dáil.
As it happened: Government’s excise duty measure passes 104 in favour, 49 against
Sinn Féin called for a commitment that there would be no excise duty hikes until the energy crisis is resolved.
Social Democrats leader Holly Cairns said the Government had only done the “bare minimum”, while People Before Profit Solidarity TD Richard Boyd Barrett said that the decision was “an admission of failure”.
That view was repeated by Labour leader Ivana Bacik who said today’s vote is because the Government fears the return of mass protests.
Ms Bacik also said that Budget 2027 must deliver targeted energy supports, index PAYE tax bands and credits, cut childcare costs and invest in the green transition and public services that would help to reduce household bills in a more sustainable manner.
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Independent TD Michael Healy-Rae said that taxation of fuel must be reworked, “because quite simply we pay too much tax and excise on the fuel that is used”.
He also questioned the viability of a just transition to green energy.
“It is very aspirational for people to be saying that by 2030 or 2035, ‘oh, we’ll have removed our reliance on fossil fuels’.
“That’s not true. We won’t be able to do that in a speedy fashion, as what we might like to do.”
TDs were recalled to Leinster House for the emergency sitting as the Dáil must give its approval to the financial resolution.
The chamber was nearly full for the vote, with many TDs who were not present for the debate attending.
Mr Harris also said the move was a common-sense decision which gives households and businesses greater certainty.
