THE AONTU PARTY has said if it were in power, it would end the universal social charge (USC) on the first €25,000 of income, reduce VAT on electricity, and also cut the VAT rate on new homes from 13.5% to 9% to lower the cost of building homes. 

Speaking to reporters about his party’s alternative budget, TD Peadar Tóibín said his party’s focus is on families, fuel and food in relation to the cost of living crisis.

“It is an incredible situation to think that so many hardworking families, so many people on decent wages, so many people who have two incomes coming into their households, are finding it extremely difficult to make ends meet at the moment,” he said. 

Other measures in the alternative budget include increasing the staying-at-home tax credit, which parents can avail of if they mind their child at home.

Tóibín said he would increase it from €1,900 to €4,000 a year, “so that families can actually make the choice, if they so wish, to be able to stay at home and raise their children”.

Aontú would introduce a dynamic pricing ceiling, so if the price of petrol or diesel increases to above €1.90, carbon tax will be removed on a cent per cent basis.

“This will stabilise the price of petrol and diesel and help families across the country,” said Tóibín.

In terms of home heating oil, Aontú would end the carbon tax on home heating oil above €1.15 per litre and also on agricultural diesel.

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In terms of electricity, Aontú would cut VAT on electricity from 9% to the EU minimum of 5% while electricity prices remain high. The document estimated the cost at €85 million a year.

Tóibín said if Aontú were in charge, it would increase the pension by €10 a week, but other core welfare payments would only rise by €3.

The budget submission also outlines how “military expenditure for Ukraine” would cease under Aontú, which the party states would save €100 million. The party would also seek to double the bank levy and impose an energy levy on large energy users such as data centres.