Indirect tax - Budget 2027

VAT rates

• VAT on non-oral respiratory vaccines for livestock will decrease from 23% to 9%.
• The annual VAT Compensation Scheme fund for charities will increase from €10 million to €15 million in 2027.

Farmer’s flat rate payment

• The farmers’ flat-rate addition will rise from 4.5% to 4.8% from 1 January 2027.

Excise Duty

• A €1 increase, including VAT, in the price of a standard 20-pack of cigarettes, with pro-rata increases for other tobacco products. 
• E-liquid Products Tax increased from 50cto 70cper millilitre, excluding VAT, from 1 January 2027, adding 40c to the price of a small single use disposable vape.
• A new 25% charge on commission earned by pool-betting operators will generally apply from 1 January 2027, with on-course pool bets being exempt.
   

Carbon tax 

• The increase from €71 to €78.50 per tonne of CO₂ on petrol and auto-diesel has been deferred to 1 May 2027, with a further increase due on 13 October 2027.
• The expected increase in Carbon Tax on green diesel from €63.50 to €71 per tonne of CO₂ is deferred to 1 May 2027, with a further increase due on 13 October 2027.
• Carbon tax on kerosene and natural gas will fall from €63.50 to €48.50 per tonne of CO₂ until 2030, being what is to be the lifetime of the government.
• Scheduled increases for other fuels, including solid fuels, will be deferred.

Mineral Oil Tax

• The non-carbon component of Mineral Oil Tax for petrol, diesel and green diesel will be deferred to 28 February 2027, with four phased increases to follow by 30 June 2027.

VRT

• VRT relief of up to €5,000 for qualifying electric vehicles is extended to 31 December 2028.
• VRT rates for Category A CO₂ bands 3–20 will rise by 1% from 1 January 2027.
   

Bank levy

The bank levy is extended for 2027, targeting €200 million.