Sir, – We would like to draw your attention to what we have identified as a hidden double tax that households across the country are paying.
The discrepancy arises in the VAT calculation on utility bills that include the amount owed for carbon tax.
The carbon tax was introduced on domestic fuels in 2010 at €15 per tonne of carbon. It was then increased in 2012 to €20 per tonne. In effect, households are paying a tax on a tax. With household resources stretched and fuel prices increasing, we feel this is grossly unfair.
We believe VAT should be calculated on the bill prior to the carbon tax being charged and that the Government should address the discrepancy in December’s budget. – Yours, etc,