Mr. Fergal O'Brien:

The 9% VAT rate should be viewed in the same way as the 12.5% corporation tax rate, which all parties in the political system support as a sensible and optimum rate that maximises jobs and activities for the State. Germany and France have permanent VAT rates that are either side of the 9% rate in place in Ireland. Low or competitive tax rates on mobile activity make economic sense, ultimately create more jobs and generate revenue for the State. The discussion on the cost of the 9% VAT rate is not sufficiently balanced in terms of the additionality the rate creates for the economy. All the studies we have seen show that the policy of having a 9% VAT rate more than pays for itself. We do not see a rationale for removing it.